Invest In Dividend Paying Gold Stocks For Best Returns

Seeking AlphaDividend StrategyInvest In Dividend Paying Gold Stocks For Best ReturnsSep. 25, 2020 4:47 PM ET|| Includes: AEM, AUY, BTG, FNV, GFI, GOLD, HL, KGC, KL, NEM, PAAS, RGLD, WPMby: Lawrence WilliamsLawrence Williams Gold & precious metals, ETF investing, portfolio strategy, CommoditiesLawrie On Gold.cls-1{fill:#024999;}SummaryGold stocks are currently achieving almost 'unbelievable' margins.
Many top tier gold stocks pay dividends too which enhances their investment value.
While gold stock dividends are fairly low, they offer better yields than are available in other financial markets.
High profit margins mean that gold stock dividends are on a rising path.
If you believe, as I do, that gold prices are headed higher, then investment in the safer gold miners, particularly those which pay dividends, is likely to be a particularly profitable move in the medium to long term. The recent big falls in gold prices will lead to an improvement in yields too, while a lower base price enhances the percentage capital gain potential. Not only will the stocks themselves likely perform better than bullion prices as relevant stocks tend to do in a rising precious metals market, but the staggering likely increase in earnings will lead to rising dividend payments as long as their outperformance of the markets persists.
I am extremely nervous about the likely prospects for general equities in the short to medium term. The counter intuitive recent rises in the major stock indexes look to have been way too far and way too fast, to be sustainable in the face of the worst economic downturn, being experienced by many (perhaps the majority of) companies, seen in our collective lifetimes. Equities have come down sharply in the past week and the question now is will they recover, or continue on their downwards path? I fear the latter, but the markets have proved pretty resilient so far proving me wrong in my equities pricing forecasts so far.
I have recommended... Read more