Gold is a peculiar thing. Its value is derived from what people are willing to pay for it. We consider it precious and its worth is totally driven by what someone else is willing to give you for it. There are no cash flows or earnings. Some investors–like America’s favorite bespectacled value guru, Warren Buffett–have even called gold not an investment at all.
For income seekers, that’s a problem.
Those looking to score some dividends from gold have had to bet on the various miners of the metal in the hopes that they pay some sort of their cash flows back to investors. And while some have dividend histories, like Goldcorp (GG), most do not. And those that do pay dividends have seen their cash flows dry on the backs of low gold prices and higher all-in CAPEX costs.
But there is another way to squeeze some dividends from a golden portfolio; one that’s overlooked by many investors.
