Savvy investors are going through their portfolios and adjusting accordingly, often re-assessing all or part of their portfolio. An excellent example of this is Goldcorp Inc. (GG). The company has a history of continuously generating dividends, and shares have appreciated steadily as a result. Recently they announced a 50% increase in the quarterly dividend, the first of its kind in a decade.
This is a welcome signal and follows more favorable sentiment in the gold space as measured by the HUI Gold Bugs Index. A sentiment shift in the gold mining and exploration space can be quite beneficial for astute shareholders. This is the case for Imperial Gold Inc. (IAG), which recently announced a 50% increase in its quarterly dividend from 7.5 cents to 10 cents per share.
This announcement of an increased dividend is nothing short of brilliant. The company began paying a dividend in 1998, and the company is up to its fourth dividend increase in as many years. There is nothing quite as unexpected as a dividend increase, but it is as welcome as it is rare. During times when gold is trading at a significant discount to the other investments with which it has been classified, these significant increases are not only welcome, but will be a positive sentiment indicator for investors and drive up the price of the stock. This is a trend that is not always apparent in the gold mining sector, which can be a red flag for the astute investor.
The increasing need to diversify a portfolio is another great example of the trends outlined above. Although Goldcorp Inc. has a near 50% stake in the popular and large gold-producing Osisko mine, they are looking to diversify by buying future growth properties from Quebec miner Galore Creek. Although this is a concentrated move, with the costs of the exploration already factored in, it could represent a great opportunity.
Whether you are looking for the next high-yield investment opportunity or are looking to cut your losses from a concentrated investment, there are many ways to invest in the precious metals space that include holding property, looking at the streaming sector, and looking at royalty and streaming businesses. Regardless of whether you look at the tangible properties or the properties that can be either developed or held as a royalty, there are many ways to invest in the precious metals space.
No matter what your preference is, there are many ways to invest in the precious metals space and you can be assured that many, many investors are searching for opportunities in this space and looking for ways to diversify their portfolio in the process. These choices include numerous physical assets, such as physical bars and coins, gold-backed ETFs, or investments in these gold-based stocks, among others.
There is no lack of options and options as it relates to investing in the precious metals space. While we would encourage readers to research their investments, be wary of too much research, and do your research based on what is best for you as an investor. The precious metals space will be a profitable place to invest in the long-term.