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With two-year U.S. Treasury bonds offering a meaningless yield of 0.35%, it's no wonder that investors are clamoring for attractive dividends to help keep their income streams flowing.
Mortgage REIT Annaly Capital (NYSE: NLY ) seems a popular choice with investors, given its current 14.1% yield, but my own personal aversion to leverage forces me to steer clear. I enjoyed a nice ride -- albeit it a bumpy one -- with Penn West Energy that began amidst the carnage of the infamous Halloween massacre of 2006; but after locking in those gains last year, I set out to find the next target for my income allocation.
And then, like clockwork, the broadly increasing dividend yields from gold and silver miners that I had urged investors to watch for began to take shape in earnest. Even with its relatively elevated cost structure, major producer Gold Fields now yields more than 3%! By linking their payouts to the prevailing price of their primary products, Newmont Mining (NYSE: NEM ) and Hecla Mining (NYSE: HL ) offer added enticement for income investors sharing my expectation for continued long-term gains in the monetary metals. Meanwhile, for Fools who are cognizant of Eldorado Gold's (NYSE: EGO ) remarkable production growth profile, this mid-tier marvel will shine with a dividend policy that's tied to both production volume and the average gold price.
Although Eldorado's innovative dividend policy shines, the dividends that will soon be available from Gold Resource (AMEX: GORO ) will quite literally glitter. That's because Gold Resource this week became the first company to announce its participation in a new physical gold and silver bullion dividend program offered through Gold Bullion International. Itself a noteworthy leader in the industry's growing emphasis upon returning cash to shareholders, Gold Resource (often referred to by its ticker symbol, GORO) strikes me as a fitting pioneer for this new program. GORO has already doled out $41 million in cash to shareholders -- through 20 consecutive monthly dividends -- since the miner declared commercial production at its El Aquila mine in southern Mexico in July 2010. Employing the slogan "Earnings are opinion; cash is fact," GORO targets long-term dividend distribution at roughly one-third of cash flow.
So while you may think that Annaly Capital offers a stunning dividend with its current 14% yield, I think we can all agree that the forthcoming dividends from Gold Resource are simply the prettiest in the world. Have a look for yourself! The following images show either side of the gold and silver bullion coins that will be available through this new program.
If you know of a prettier dividend out there, I'm all ears.
- Add Gold Resource to My Watchlist
- Add Eldorado Gold to My Watchlist
- Add Hecla Mining to My Watchlist
- Add Newmont Mining to My Watchlist
- Add Annaly Capital Management to My Watchlist
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