Some smaller gold and silver miners pay decent dividends too

Dividends play an increasingly important role in attracting investors to gold and silver stocks. While this largely applies to major and mid tier companies, some junior miners also make significant payments.

Author: Kip Keen
Posted: Friday , 27 Jul 2012

HALIFAX, NS (MINEWEB) -

Small precious metal producers are not well known for gifting dividends. Indeed, developing and operating a mine is capital intensive and profits - if any - are often slim for modest sized miners. Mine owners might commiserate with yacht owners who say boat stands for Break Out Another Thousand. By the same token investors in mines might say, Millions Invested, Nothing Extracted. And what's more, when it comes to dividends the argument goes that small companies should hold onto their profits to grow organically rather than lining the pockets of shareholders. This has been especially important to consider in an industry where gold and silver mineral deposits have expiration dates, replacing them isn't cheap and metal prices were long in the dumps.

Mineweb

The mantra should be: 'Buy your dividend yields cheap,' rather than 'Buy your ounces in the ground cheap.'

-F6