Barrick Gold and Newmont Gold Corp. raise dividends

pmbug

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Barrick Gold Corp. (ABX), the world’s largest producer of the metal, raised its quarterly dividend by 25 percent after gold climbed to a record.

The company will pay 15 cents a share, up from 12 cents, payable on Dec. 15 to shareholders of record at the close on Nov. 30, Toronto-based Barrick said today in a statement.
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Newmont Gold Corp., the second-biggest producer by production, said in April it would link its dividend to the gold price. The Greenwood Village, Colorado-based company said last month it was sweetening the payouts for quarters in which gold exceeds $1,700 an ounce.

Newmont said today it will increase its quarterly dividend 17 percent to 35 cents, from 30 cents.
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More: http://www.bloomberg.com/news/2011-...d-25-after-gold-price-advances-to-record.html
 

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Wait till December when the board meets to vote on the new dividend policy. The yields are going to be insane.

5% yield plus inflation protection. This happened before in the 1970s where the miners outperformed gold. Phase 2 of this bull market might finally be starting.

http://www.marketwatch.com/story/newmont-enhances-gold-price-linked-dividend-policy-2011-09-19

DENVER, Sept. 19, 2011 /PRNewswire via COMTEX/ -- Newmont Mining Corporation NEM +0.21% ("Newmont" or the "Company") today announced enhancements to its industry leading gold price-linked dividend policy, announced initially in April 2011. Under the enhanced policy, Newmont's annual dividend has the potential to increase to $4.70 per share if the Company's average realized gold price reaches $2,500 per ounce.

The enhanced policy will continue to link the quarterly dividend rate to changes in the gold price but will also provide an additional step up of 7.5 cents per share when the Company's realized gold price for a quarter exceeds $1,700 per ounce and a further step up of 2.5 cents per share (10 cents in total compared to the existing policy) when the Company's realized gold price for a quarter exceeds $2,000. At average realized gold prices below $1,700 per ounce, the current dividend policy remains unchanged. Newmont's quarterly gold price-linked dividend payments are based on the Company's average realized gold price for the preceding quarter.

"In April, Newmont launched the industry's first and only dividend policy linked directly to the realized gold price," commented Richard O'Brien, President and Chief Executive Officer. "Newmont's cash flow and balance sheet strength in the current metal price environment provide us with the flexibility and strength to simultaneously fund our internal growth pipeline and return meaningful cash to our shareholders."
 
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