Are you looking for the best gold stocks that also pay a monthly dividend or the best Canadian Dividend Stocks? Some investors prefer to get their dividends every month, as opposed to just once a quarter or annually. These monthly dividend income stocks are quite convenient for someone trying to budget their expenses. If you like gold, which is a great hedge against inflation, then you should consider these gold mining stocks that pay monthly dividends. I believe they will provide investors with a nice return on capital going forward.
Why Invest in Gold Stocks in 2013 and beyond?
Gold stocks generally tend to outperform the physical gold. Although they have underperformed since 2009, gold stocks have significantly outperformed the metal since 2000.
Investors have fled the gold stocks, as some expected the price of gold to decline under $1,500. Others simply wanted out of any stocks, putting their money in cash. However, with the recent announcement of QE4, with the FED committed to printing more money and expanding their balance sheet, I see big upside for gold prices in 2013.
How much does it cost to produce gold?
Gold mining stocks produce gold out of the ground, and the average cost to produce an ounce of gold right now is in the $600-700 range. Everything else is pretty much pure profit.
Best Gold Stocks That a Monthly Dividend
1) Gold Resource Corp. (GORO) - This is a Canadian dividend paying stock that pays a monthly dividend of .06 cents per share, with a current yield of 4.68 percent. They have a market cap of $810 million and share price of $15.39.
The Company has 100% interest in six high-grade gold and silver properties in Mexico's southern state of Oaxaca.
The Company's flagship property, its El Aguila Project, commenced commercial production July 1, 2010.
This is one stock that has a good history of paying dividends to its shareholders. They started paying dividends in Sept. of 2010 and have steadily increased the payouts – starting at just .06 a share, they now pay .18 per share (each quarter total).
Their earnings estimate for Full Year 2013 is $1.13 EPS. This is one monthly dividend paying stock I would keep an eye on. That gives them a forward P/E ratio of about 13.6.
2) GoldCorp (GG) - This large cap miner pays a .045 Monthly Dividend, giving them a yield of 1.51 percent. They have a share price of $35.75 and market cap of 29 Billion.
Although the yield isn’t spectacular, this is the less riskiest of the gold stocks mentioned, in my opinion.
They are big, but they are still growing pretty fast, giving investors good potential for capital appreciation - By 2016, the company expects annual gold production to reach 4.2 million ounces, an increase of 70% over the next 5 years.
Goldcorp is also one of the lowest cost producers out there – cash costs were $660 an ounce last quarter. With a Quarter-end cash balance of $894 million, they have more than enough cash to continue paying investors a nice monthly dividend.
The company is expecting earnings per share of $3.03 in 2013, giving them a forward P/e of just 11.8.
3) Franco Nevada Corp. (FNV) - .This gold streaming company pays a .05 monthly dividend and yield of 1.28 percent. Share price of $56.15 and market cap of 8.2 billion.
The business model for Franco Nevada is unique, because they are not actually a gold mining company. Franco is a gold-focused royalty company, which also invests in platinum and other resources.
They give capital to mining companies to build a mine, and they get a portion of the profits at a fixed price. This business model is inflation proof, meaning they are not affected by rising costs of mining gold. It provides yield and exploration upside.
The business model is designed to be a cash-flowing machine. Franco is one company I think has big potential to increase their dividend payouts going forward.
Dividend Gold Stock With its Dividend Linked to the Price of Gold
Newmont Mining Dividend Policy – This is a unique dividend company, because their dividend is linked to the price of gold – when gold goes up, so does their dividend!
It’s a pretty awesome stock dividend policy, especially if you think the price of gold is going to go up like I do. Check out the picture below for more details. Although this isn’t a monthly dividend gold stock, I still like them.
Newmont’s quarterly dividend of .35 cents gives them a current yield of 3.17 percent. Price of 44, market cap of 21.7 billion.
Other Stories to Read
- If you really want an ETF that pays dividend monthly instead of stocks, check out this story on the best ETFs that pay a monthly dividend.
If you are bullish on gold stocks and want to read more, check out my list of the top 5 gold stocks for 2013.
*Books to Read*
If you are really new to investing in gold and silver stocks, you should read up on how to get started investing! Check out a book on a list of all the stocks available to invest in and another of all resource stocks.
List of All Gold and Silver Mining Stocks
Amazon Price: $16.99 $12.99 Buy Now
(price as of Aug 27, 2013)
On Junior Mining Stocks - Great Investment Tips
Amazon Price: $22.95 $14.80 Buy Now
(price as of Aug 27, 2013)
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