Issue link: http://resourceworld.uberflip.com/i/162873
IN V ES TM EN T Dividend paying resource companies by Kathrine Moore T he great thing about dividend paying stocks is that they pay you to own them. Though, they do tend to cost more than speculative, non-dividend paying stocks. Mining stocks are usually not the first stocks investors think of when looking for a dividend paying investment. However, with the ongoing bear market in resource stocks and historically low interest rates reducing the returns on fixed income investments, investors are increasingly seeking out and adding divi- dend paying resource companies to their investment portfolios. Dividend paying resources stocks provide investors with the opportunity to benefit from an excellent capital gain opportunity while at the same time providing steady revenues from dividend payouts. Keith Darby of The Globe & Mail wrote in Inside the Market, "More companies are changing their business models to appease investors who are demanding return of capital instead of spending on corporate growth. But it's tricky to find stocks right now that offer sustainable dividends at a time when the commodities sector including energy and metals - is largely out of favour with investors." HOW DO YOU PICK A GOOD DIVIDEND PAYING RESOURCE STOCK? One of the first things an investor should look at, when choosing a dividend paying stock, is the stock's dividend payout ratio. The dividend payout ratio is the percent- COMPANY STOCK SYMBOL PRICE MARKET CAP Agnico Eagle Mines Ltd. [AEM-TSX, NYSE] $33.00 $5,719,314,084 Batex Energy Corp. [BTE-TSX, NYSE] $40.97 $5,083,919,488 Bonavista Energy Corp. [BNP-TSX] $13.00 $2,359,928,974 Centerra Gold Inc. [CG-TSX] $6.45 $1,524,625,271 Cliffs Natural Resources Inc. [CLF-NYSE, Paris] $22.51 $3,446,855,095 Crescent Point Energy Corp. [CPG-TSX] $38.71 $14,945,831,786 Franco Nevada Corp. [FNV-TSX, NYSE] $47.64 $6,996,592,290 Freeport McMoran Copper & Gold [FCX-NYSE] $31.32 $32,506,396,933 Goldcorp Inc. [G-TSX; GG-NYSE] $32.01 $25,994,991,009 Gold Resource Corp. [GORO-NYSE MKT] $8.46 $450,743,462 IAMGOLD Corp. [IMG-TSX; IAG NYSE] $6.68 $2,515,449,551 Nevsun Resources Ltd. [NSU-TSX, NYSE MKT] $3.50 $697,577,353 Newmont Mining Corp. [NMC-TSX; NEM-NYSE] $33.93 $166,789,192 Peyto Exploration & Development [PEY-TSX] $28.45 $4,232,191,359 Renegade Petroleum Ltd. [RPL-TSXV] $1.09 $221,429,816 Sierra Metals Inc. [SMT-TSX, BVL] $2.00 $315,694,164 Silver Wheaton Corp. [SLW-TSX, NYSE] $28.59 $10,147,175,723 Teck Resources Ltd. [TCK.B, TCK.A-TSX; TCK-NYSE] $25.92 $14,693,009,619 Trilogy Energy Corp. [TET-TSX] $27.50 $2,532,890,525 Troy Resources Ltd. [TRY-TSX; ASX] $1.82 $299,515,030 Yamana Gold Inc. [YRI-TSX; AUY-NYSE; YAU-LSE] $12.20 $9,189,182,836 Zargon Oil & Gas Ltd. [ZAR-TSX] $7.54 $226,523,798 20 www.resourceworld.com SEPTEMBER 2013