I´m searching for gold miners that peg dividends to gold prices

[swissaustrian]

I´m searching for gold miners that peg dividends to gold prices

I want to generate some cash flow from my pm investments.
Therefore i´m searching for gold mining companies that peg their dividends to the price of gold.

I only know one: NEM.
Do you know others?

 

[cubical]

I believe they are the only ones.

 

[swissaustrian]

I´m sure there are others i just can´t remember...

 

[swissaustrian]

Ok here is a similar strategy: Yamana Gold (AUY)
http://www.fool.com/investing/gener...d-just-became-50-more-interesting-for-di.aspx
They already went ballistic.

 

[Seraphim]

I've noticed that Newmont pegs it's dividend at 30cents a share, QUARTERLY.


So 10 shares would yield 3 dollars every 3 months?

Seems awefully low. The shares are 55$ a pop.

At this point I'm more inclined to buy silver to continue building a solid core of savings/investment.

 

[swissaustrian]

I've noticed that Newmont pegs it's dividend at 30cents a share, QUARTERLY.


So 10 shares would yield 3 dollars every 3 months?

Seems awefully low. The shares are 55$ a pop.

At this point I'm more inclined to buy silver to continue building a solid core of savings/investment.

Yep, yield is 2,1% annually. Quite poor.
That´s why i´m searching for higher yields.

 

[Seraphim]

What's a more "normal" annual yield for a dividend?

Yep, yield is 2,1% annually. Quite poor.
That´s why i´m searching for higher yields.

 

[swissaustrian]

What's a more "normal" annual yield for a dividend?

Mining shares usually aren´t dividend stocks, because this market is in the growth phase.
consumer stocks, utitilities, telecommunications, oil, tobacco, and some insurances offer yields of 5%-7% right now. Some even higher.

 

[Seraphim]

Ok cool - I figured 6% was probably around average.

Thanks - I think I will buy some Newmont at some point soon. I don't see how their gold priced dividends will go anywhere but up.

Mining shares usually aren´t dividend stocks, because this market is in the growth phase.
consumer stocks, utitilities, telecommunications, oil, tobacco, and some insurances offer yields of 5%-7% right now. Some even higher.

 

[cubical]

Look at MLPs for yield and some commodity exposure.

 

[swissaustrian]

Ok cool - I figured 6% was probably around average.

Thanks - I think I will buy some Newmont at some point soon. I don't see how their gold priced dividends will go anywhere but up.

6% for the big blue chips, yes.
I´m thinking about accumulating NEM too. Probably the stock is going to fall with the gold price for a couple of days. Then we might see a good entry point.
The quarterly Dividend will be priced in on 9-6 (ex-dividend date).

Analyst opinion is this:
Strong buy:8
Buy: 2
Hold: 6
Sell: 0
Strong sell: 1
Latest revisions:
0 Upgrades
0 Downgrades

P/E 12, probably this estimation is too high, because analysts didn´t expect the surge in gold prices.

 

[swissaustrian]

Look at MLPs for yield and some commodity exposure.

If i type in MLP i get: Maui Land&Pineapple (DCT)?

 

[cubical]

If i type in MLP i get: Maui Land&Pineapple (DCT)?

Master Limited Partnerships. They offer tax advantages and huge distributions to US citizens. I am unsure how it works if you are overseas.

 

[swissaustrian]

Master Limited Partnerships. They offer tax advantages and huge distributions to US citizens. I am unsure how it works if you are overseas.

Ok thanks.

 

[jclay2]

Don't invest in miners. Please listen to my advice. Physical metal in your possession has outperformed the miners and with LESS RISK. You should only own specific miners if you have a large base of physical and are ready to pour over financials to find a gem amongst the rubble.

 

[libertybrewcity]

NEM raises its dividend 10 cents everytime gold rises $100. If gold stays around 1800, the dividend will be at 50 cents next quarter.

 

[swissaustrian]

Don't invest in miners. Please listen to my advice. Physical metal in your possession has outperformed the miners and with LESS RISK. You should only own specific miners if you have a large base of physical and are ready to pour over financials to find a gem amongst the rubble.

I own quite a bit of physical and miners are just 5% of my portfolio as stocks only make 10-25% of it. I´ve done pretty well with them. (e.g. SLW, RGLD)
Some mining shares are totally undervalued right now. The surge in the price of gold hasn´t been priced in so far. see here
:

In order to generate some cash flow, mining shares that pay dividends are a good pick for me. Especially because hedge funds often use the long metals, short miners trade. Some companies are set up to have massive short squeezes. Look at what happened to Yamada Gold.
Surely, you have to do your homework and analyze the single company.

 

[Nic]

The great thing about dividend investing is that even though you may only be getting 2% right now, as time goes on and the stock price goes up, so does the dividend. In time, that dividend may wind up yielding 7 or 8% of your original investment.

 

[llepard]

Check out Gold Resources, ticker GORO. They commit to pay out a meaningful percentage of cash flow which is effectively a peg to the gold price. I own it. Their deposit is very rich. Management is good. It is fairly priced. (not cheap, fair). I think it will be a popular stock due to dividend policy.

LL

 

[swissaustrian]

Check out Gold Resources, ticker GORO. They commit to pay out a meaningful percentage of cash flow which is effectively a peg to the gold price. I own it. Their deposit is very rich. Management is good. It is fairly priced. (not cheap, fair). I think it will be a popular stock due to dividend policy.

LL

Thanks, Larry!
The dividend policy really sounds interesting:

GRC is proud to have declared its initial $0.03 per/share "special" cash dividend July 31, 2010, just 30 days after declaring commercial production, and distributed consecutive monthly "special" dividends totaling $0.18 per/share returned back to the shareholders of the Company in 2010. The Company targets long-term dividend distributions of approximately 1/3 of cash flows.

http://www.goldresourcecorp.com/overview.php

What about the role of Mexican unions in mining? From what I know they´re causing some trouble for the companies, but it´s not as bad as in South Africa?