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Gold mining stocks with dividends are one of the best ways to profit from future increments in gold prices. You can expect returns of 15% or more from a well-performing gold mining stock when you include its dividend.
And now is a great time to buy.
"Gold stocks are attractive now for several reasons," Money Morning's Resource Specialist Peter Krauth said. "On a historical basis and relative to the gold price, gold stocks are still oversold, representing a strong bargain. What's more, the World Gold Council has reported record jewelry, bar, and coin demand for 2013, with consumer demand up 21%."
Krauth believes gold mining companies that have managed to control and lower costs, focus on the most viable projects, and rein in capital expenditures, stand to benefit the most from this bullish gold market.
There are several advantages to investing in the yellow metal via gold mining stocks with dividends…
Benefits of Gold Mining Stocks With Dividends
Buying physical gold can be a good way to store wealth, but there is always a risk of storage of physical gold. At the same time, in order to realize profits, you need to sell the physical gold.
However, when you invest in gold mining stocks with dividends, you're able to create steady income streams.
Dividend stocks also provide some tax advantages. Dividends from eligible companies are taxed differently than standard interest income.
Additionally, studies have tied the payment from dividends to superior stock performance. On average, companies which pay dividends tend to outperform other companies in the market when the prices are rising. Moreover, they decline less than the average in a falling sector.
Profit Alert: Over time you can make more money in dividends than you paid to buy the stocks that produce them. Get today's best dividend strategy for building wealth in the low-yield era.
Among the hundreds of gold mining stocks that offer dividends, here are some pointers on how to select the best for your portfolio…
How To Judge Gold Mining Stocks With Dividends
Consider the dividend yield on a year-on-year basis. It is also important to examine the company's total yearly dividends, and the share price. This data will say a lot about the return on your investment.
But note that simply selecting stocks with very high yields is not a good strategy. A company's yield can also be high when its share price drops – so high yield can also mean high risk.
Make sure to consider the following when picking a dividend stock:
History of paying dividend, and even raising it.
Healthy balance sheet with low debt and significant cash balance.
Reasonable payout ratio.
By examining these indicators, you'll have a better chance of selecting gold mining stocks with dividends that will net steady cash flow and solid long-term gains.
Now, here are fifteen gold mining stocks that pay dividends to get you started…
List of 15 Gold Mining Stocks With Dividends
*Financial data listed as of market close on April 22, 2014.
- AUY – Yamana Gold Inc.: Dividend Yield – 1.93%, Price Per Share – $7.46, Annual Dividend – 0.15
- RGLD – Royal Gold Inc.: Dividend Yield – 1.30%, Price Per Share – $64.62, Annual Dividend – 0.84
- GOLD – Randgold Resources Ltd.: Dividend Yield – 0.61%, Price Per Share – $78.09, Annual Dividend – 0.48
- NEM – Newmont Mining Corp.: Dividend Yield – 2.40%, Price Per Share – $25.04, Annual Dividend – 0.60
- AEM – Agnico Eagle Mines Ltd.: Dividend Yield – 1.16%, Price Per Share – $27.47, Annual Dividend – 0.32
- AU – AngloGold Ashanti Ltd.: Dividend Yield – 1.20%, Price Per Share – $17.55, Annual Dividend – 0.21
- GG – Goldcorp Inc.: Dividend Yield – 2.45%, Price Per Share – $24.47, Annual Dividend – 0.60
- AGI – Alamos Gold Inc.: Dividend Yield – 2.19%, Price Per Share – $9.12, Annual Dividend – 0.20
- BVN – Compania de Minas Buenaventura SAA: Dividend Yield – 2.33%, Price Per Share – $12.43, Annual Dividend – 0.29
- ABX – Barrick Gold Corp.: Dividend Yield – 1.14%, Price Per Share – $17.55, Annual Dividend – 0.20
- IAG – IAMGOLD Corp.: Dividend Yield – Unknown, Price Per Share – $3.45, Annual Dividend – Unknown
- EGO – ELdorado Gold Corp.: Dividend Yield – 1.69%, Price Per Share – $5.92, Annual Dividend – 0.10
- GFI – Gold Fields Ltd.: Dividend Yield – 1.93%, Price Per Share – $7.76, Annual Dividend – 0.03
- KGC – Kinross Gold Group: Dividend Yield – Unknown, Price Per Share – $4.10, Annual Dividend – Unknown
- GORO – Gold Resource Corp: Dividend Yield – 7.56%, Price Per Share – $4.76, Annual Dividend – 0.36
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