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The Prettiest Dividend in the World

Christopher Barker
March 13, 2012

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 soo