Silver Wheaton: 3 Reasons to Sell

Motley Fool contributing writer Dan Caplinger explains silver streaming, the unique business model of Silver Wheaton (NYSE: SLW  ) , whereby SLW offers financing to mining companies in return for the right to buy future production of silver at a discount.

In this video, Dan shares how adequately financed potential competitors might pose a threat to Silver Wheaton in the future.

Additionally, Dan reviews the pros and cons of SLW's policy of paying a cash dividend based upon 20% of cash flow.

Lastly, Dan describes how the effects of leverage may make owning Silver Wheaton more volatile than a more traditional alternative, such as investing in shares of iShares Silver Trust (NYSEMKT: SLV  ) .

If you are looking for a company whose success is determined by the metals market, but doesn't involve itself in the risks of physically mining the metals, then Silver Wheaton provides a unique play on the future of silver. SLW has grown sales and net income every year since 2008, and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2473055, ~/Articles/ArticleHandler.aspx, 5/28/2016 12:04:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 17,873.22 44.93 0.25%
S&P 500 2,099.06 8.96 0.43%
NASD 4,933.51 31.74 0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/27/2016 4:02 PM
SLW $18.20 Down -0.64 -3.40%
Silver Wheaton Cor… CAPS Rating: ****
SLV $15.39 Down -0.14 -0.90%
iShares Silver Tru… CAPS Rating: ***