Gold Shares Are Raising Dividends

Gold companies from emerging to major producers, unbeknownst to most investors – even within the dedicated gold community, have slowly begun the process of issuing and raising dividends. Investors, often blinded by fear and emotions generated by ebb and flow within the trend, tend to ignore the impact of dividend on total return. Smart money recognizes a growing number of inaugural issuances and payout increases, i.e. the movement of money, despite headline ‘talk’ that encourage doubt and fear. As the old saying goes, talk is cheap, but the movement of money is dear.

Long-term gold indices such as S&P Gold (Formerly Precious Metals Mining)* illustrated below do not include the distribution of dividends into its trend. This means capital appreciation indices severely understate total return during periods of skyrocketing dividend payouts.

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: Nevsun Declares Inaugural Semi-Annual Dividend

Nevsun Resources Ltd. (TSX:NSU - News)(AMEX:NSU - News) is pleased to announce that the Company's Board of Directors has approved a semi-annual cash dividend of US$0.03 cents per common share (US$0.06 per common share annually). The dividend is payable on July 15, 2011, to shareholders of record as of the start of business on June 30, 2011.

"The successful startup of the high grade, low cost Bisha mine is the start of significant cash flow for the Company. We are focused on significant internal reserve expansion at Bisha, as we strive to double our reserves this year, while also reviewing additional opportunities for Nevsun," said Cliff Davis, Chief Executive Officer. "With $103 million cash at quarter end and significant ongoing cash flow, Nevsun is well positioned to fund this growth and provide a dividend return to our shareholders."

Source: finance.yahoo.com