Gold Miners Increasing Dividends
BY: NICK HODGE
As I've been saying would happen for months, major gold miners are now increasing their dividends significantly.
Unlike most sectors, gold miners are actually making a profit. Some are even growing it. This is a rarity in a world where the average year-over-year earnings growth in the third quarter for S&P 500 companies is -16.5%. That's a minus sign in front of that number.
Not only are gold miners making and growing profits, but they are increasing and reinstating dividends.
Newmont (NYSE: NEM)(TSX: NGT) announced today it is increasing its dividend by 60% from the second quarter. It will pay US$0.40 per share this quarter verus US$0.25 per share last quarter.
Agnico Eagle (NYSE: AEM)(TSX: AEM) is increasing its dividend by 75%, from US$0.20 per share to US$0.35. That's what happens when you more than double your quarterly earnings.
This type of earnings and dividend growth is what's going to attract more generalists to the gold sector. There's a reason Warren Buffet bought Barrick Gold (NYSE: GOLD)(TSX: ABX).
That extra cash is also what's going to drive mergers and acquisitions in the gold space.
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Cal it like you see it,
Publisher, Resource Stock Digest