Monday, May 09, 2011

Gold Broke Above $1500 an Ounce Again: Income Gold Stocks

On Monday, the price of gold penetrated up through the $1500 an ounce level again. By happenstance, Jim Cramer interviewed Mark Bristow, the CEO of Randgold Resources (GOLD) on the Mad money television show. Cramer considers this stock the best high risk high reward gold miner, with the risk due to the fact that much of the company's operations are in African countries with significant investment concerns. Randgold, which is one of over twenty stocks on the list of dividend paying gold mining stocks at, pays a small yield of 0.2%. It trades at 14 times forward earnings.

In terms of gold's future, Randgold's Bristow said on the show that the price of gold has a "lot of upside". So for more conservative investors, what gold stocks are worth looking into? Cramer mentioned that he liked Goldcorp Inc. (GG), one of the few gold miners that pays dividends monthly. Payouts have been made regularly since 2005. The current yield on the stock is 0.9%. The stock sports a forward price to earnings ratio of 18. It has mines in Canada, United States, Mexico, and Central and South America.

Freeport-McMoRan Copper & Gold Inc. (FCX) is a stock that pays quarterly and currently yields 2.0%. The company has operations in North and South America, Indonesia; and in the Democratic Republic of Congo. It trades at 8 times forward earnings.

For a free list of gold mining stocks that pay dividends, which can be downloaded and updated, go to

Disclosure: Author did not own any of the above at the time the article was written.


1 comment:

Miroslaw Matysiak said...

Thanks for sharing this info and your point of view.Looking forward for next article.