Silver Wheaton: 3 Areas to Focus On

By Dan Caplinger – May 30, 2013 at 8:38PM

NYSE: WPM

Wheaton Precious Metals

Market Cap

$24B

Today's Change

(1.73%) $0.91

Current Price

$53.47

Price as of April 25, 2024, 1:15 p.m. ET

The 3 things Silver Wheaton investors really need to watch.

In the following video, Fool contributor Dan Caplinger explains the basics of the silver streaming business model that Silver Wheaton (WPM 1.73%) uses to contract with partner mining companies.

Dan also highlights a new agreement with Brazil's Vale (VALE -2.87%) as an example of a new partner streaming agreement that features a focus on gold. Can Silver Wheaton continue to profit from future agreements with partners such as Barrick Gold (GOLD 2.00%), Primaro Mining (PPP), and Hudbay Minerals (HBM 4.07%)?

Dan discusses how the price of silver may affect Silver Wheaton's dividend, which is currently based on 20% of cash flow. And he also points out why the Federal Reserve's change in tone regarding future stimulus policy is a factor that investors should monitor closely.

Fool contributor Dan Caplinger owns shares of Silver Wheaton. The Motley Fool owns shares of Vale and Primero Mining. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.