Sunday, March 16, 2014

Gold is Up 11% in the Last Month and a Half: Top Income Gold Stocks

Do you realize that in the last month and a half, the price of gold has risen 11%, whereas the S&P 500 has only gone up by 3.3% over the same period of time. The share prices of gold mining companies have also started taking off. The Market Vectors Gold Miners ETF (GDX) is up 18.1%, and the Market Vectors Junior Gold Miners ETF (GDXJ) up 26.1%.

Investors can not only achieve capital appreciation on their gold mining shares but also dividend income from certain companies, as yields on these stocks are fairly high, compared to what you could receive from a bank account. Keep in mind though that some of the gold mining companies link their dividends to the price of gold, and even those that don't could easily cut their dividends if the price of bullion drops. According to the free list of high yield gold mining stocks at, there are over 20 gold stocks that pay out dividend yields, ranging from 0.4% to over 6%.

Freeport-McMoRan Copper & Gold (FCX) is a major producer in the precious metals sector. The world's largest publicly traded copper company, it also mines for gold, molybdenum, cobalt, silver, and several other metals. This Phoenix, Arizona based miner has operations in North America, South America, Indonesia, and Africa. The stock trades at 12 times trailing earnings and 10 times forward earnings. Earnings for the latest quarter were down 4.8% on a revenue boost of 30.4%. The stock pays a very generous 3.9% yield, and dividends are paid quarterly.

Another high yield gold company is Yamana Gold, Inc. (AUY), a Toronto, Ontario, Canada based miner which explores for and produces gold, copper, molybdenum, zinc, and silver, from its properties in Brazil, Chile, Argentina, and Mexico. The stock trades at 25 times trailing earnings and 24 times forward earnings. The latest quarterly revenues were down 33.2%. The stock pays a CD beating yield of 1.5%. Dividends for this company are also paid out quarterly.

For more of a silver play, there is Silver Wheaton Corp. (SLW), the Vancouver, Canada company which yields 1.4%. The stock has a trailing P/E ratio of 21 and a forward P/E of 28. Quarterly revenues were up 3.2% but earnings dropped 35.6%.

The yields on these stocks can help reduce some of the volatility and return your capital quicker. Just remember, that companies can reduce (or increase) their dividend payouts at any time. For a list of the other high yield gold and silver mining stocks, which can be downloaded, sorted, and updated, go to

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

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