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The Stocks and Shares ISA is the greatest investment product on the planet, I believe. It can supercharge investors’ chances of compounding their gains with protection from capital gains and dividend tax. What’s more, any withdrawals made are safeguarded from income tax.
I own a tax-efficient ISA myself. And I’ve identified a top dividend shares to consider buying for it: Hochschild Mining (LSE:HOC).
Here’s why I think it could turbocharge an investor’s passive income.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
Gold and silver surge
Hochschild Mining doesn’t offer the largest dividend yield out there. A surging share price (up 131% over 12 months) has reduced the yield to 1.5% for 2026, reflecting a bumper period for gold and silver prices.
Yet the prospect of stunning payout growth still makes this FTSE 250 miner worth consideration in my book. This year’s dividend is expected to be up 162% from 2025’s levels. A 32% increase is forecast for next year too.
This perhaps isn’t a shock given the unprecedented scale of precious metals demand. Inflows into gold-backed exchange-traded funds (ETFs) hit record levels in 2025, meaning assets under management (AUMs) doubled year on year to $559bn. That’s according to the World Gold Council.
This trend has supercharged returns from miners like Hochschild, as their profits tend to grow more sharply than metal prices. This is thanks to the ‘leverage’ effect, where — due to these companies’ fixed costs — every extra dollar of revenue goes straight to the bottom line.
Bright price forecasts
With geopolitical uncertainty growing, I think 2026’s shaping up to be another strong year for precious metals. Silver claimed new peaks near $83 per ounce in recent days following US action in Venezuela and talk around Greenland.
It’s possible that prices could be volatile if profit-taking sets in. But over a longer period, I’m confident precious metals will keep rising as other factors play out, like a probable further weakening of the US dollar and declining interest rates.
Analysts at Goldman Sachs expect gold to hit $4,900 an ounce by the fourth quarter. That’s up around $450 from current levels.
In this environment, Hochschild looks in good shape to grow dividends strongly as expected. A strong balance sheet should also support its ability to deliver breakneck dividend growth. The company’s net-debt-to-EBITDA ratio was just 0.4 as of June.
A top ISA share?
Hochschild’s worth special attention as a mining play, too, as it’s expanding production to capitalise on soaring gold and silver. Output at its Mara Rosa yellow metal mine is increasing following earlier problems. Key projects in Peru (Inmaculada) and Argentina (San José) are meanwhile tipped to maintain stable production levels.
Remember though, that mining is a highly unpredictable business, and any production setbacks could more than offset rising metal prices and pull profits lower. Problems at Mara Rosa last year forced it to cut back full-year production estimates.
Still, in the current landscape I think Hochschild’s a top income stock to consider for a Stocks and Shares ISA.
