Barrick Gold ABX

Are Gold Stocks Cheap? Factors that Increase the Price of Gold

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As a dividend investor, I certainly would never have considered gold stocks as a possible investment for my portfolio. In fact, I haven’t even invested in gold, and have missed the big run-up in gold bullion over the last few years. I’ve always considered gold and gold stocks as speculative investments to be avoided. However, the price of gold bullion and the share value of gold producers are not always correlated. Currently gold is only 7% off its March highs, with a troy ounce of gold currently trading at $1662 USD. Conversely, the world’s two largest gold producers by market …

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Recent Buy: Teck Resources and Barrick Gold

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In a previous post on The Dividend Pig, I discussed opportunity in the Canadian mining sector. As I discussed in that post, many investors overlook mining stocks as dividend growth companies, because of their lower dividend yields. Yet these are “dividend growth” companies many with strong balance sheets. They have recently raised their dividends, and have more potential for share price increase. Take Potash Corp. (POT) as an example which recently raised its dividend by a whopping 33%! In that post I specifically discussed Barrick Gold (ABX), Goldcorp (G), Potash Corp. (POT), and Teck Resources (TCK.B).  As mentioned, Teck and …

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Opportunity in the Canadian Mining Sector

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The post is titled, Opportunity in the Canadian Mining Sector.  It is a review of three Canadian mining stocks listed on the NYSE and is intended for U.S. investors who may not be familiar with Canadian resource companies. I review the sector in relation to its possible value play and briefly review three company fundamentals. Here is a snippet: “Many investors don’t think of mining stocks as dividend growth companies because of their lower dividend yields. The sector has largely been overlooked by the Canadian dividend investing crowd. Yet, these are dividend growth companies with strong balance sheets. They have …

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Barrick Gold vs. Goldcorp

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Back in April I wrote an interesting post asking the question Are Gold Stocks Cheap?  In that post I looked at the two leading gold producers, Barrick Gold (ABX), and Goldcorp Inc. (G). Both these multi-billion dollar companies trade on the TSX, but they are by production tonnes and profit, the world’s leading gold miners and gold producers. They generally have solid fundamentals, low debt, and pay a dividend. Like most mining companies the dividend yield is lower.  Many low dividend yield stocks have tremendous potential for capital growth that far outweighs the yield. ABX and G together make up …

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