Gold Miners Are Raising Dividends

Agnico has boosted its annual dividend 256%. Of course, huge payoff for investors is met will selling as the options expiration game punishes those foolish enough to hold to maturity. Agnico is but one of growing list of miners increasing their dividends. History, as described by Homestake mining, suggests this trend remains in its infancy.

S&P Gold (Formerly Precious Metals Mining)*
*S&P Gold from 1945, Barron's Gold Stock Index from 1939-1945, 1922-1939 Homestake Mining:


Headline: Agnico boosts dividend; shares sag on cost worries

Gold miner Agnico-Eagle (AEM.N) announced a big dividend increase on Thursday and outlined plans to raise its gold output, but its shares fell on concerns about its higher than expected productions costs.

Analysts noted that Agnico's average production costs of slightly above $430 an ounce over the next five years were higher than expected, sending the shares down more than 4 percent in both Toronto and New York.

Source: reuters.com