Friday, July 30, 2010

Two Major Gold Producers Raise Dividends

Both Newmont and Barrick have raised their dividends by substantial amounts. The former bumped it up by 50% to 15 cents per share per quarter, and the latter upped by 20% to 12 cents. At current prices, both yield a little more than 1%.

It's higher gold prices that have done it, along with the lack of margin squeezes due to higher costs. Although gold companies are more prone than most when it comes to dividend cuts, those increases show some confidence in currently elevated profit levels.