Wednesday, September 19, 2012

Gold at the Highest Level Since February - Top Gold Income Stocks

If you have been watching the price of gold recently, you would have noticed that gold has been trading at its highest level since the end of February of this year. Many analysts believe that god, and the gold mining stocks, still have a long way to go. Investors that want to participate may want to look for the gold mining companies that pay dividends in order to help reduce risk. According to, there are over twenty dividend paying gold stocks, with more than ten with yields in excess of 1.5%.

One example is Freeport-McMoRan Copper & Gold Inc. (FCX), which increased the dividend back in April from 25 cents per quarter to 31.3 cents, giving the stock a 3.6% yield. Freeport trades at 12.5 times trailing earnings and 8.6 times forward earnings. It pays a very favorable yield of 3.0%, and pays its dividend quarterly. Earnings tanked by 48% for the latest quarter, with revenues dropping 23%.

Yamana Gold Inc. (AUY) is another gold stock that pays a decent quarterly dividend, offering a payout rate of 1.4%. The stock has a current price to earnings ratio of 34.5 and a forward PE of 13.7. The company was recently upgraded by HSBC Securities from Neutral to Overweight. Quarterly earnings for the latest quarter were down 78% on a 6.6% reduction in revenues.

A few other high yield gold stock ideas are Rio Tinto plc ADR (RIO), paying a yield of 2.8% and Newmont Mining Corporation (NEM), yielding 2.5%.

For a free list of over twenty high yield gold and silver stocks, which you can download, sort, and update, go to

Disclosure: Author didn't own any of the above at the time the article was written.


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