Dividend-Paying Gold Stocks are Very Alluring

In testimony before the Senate Banking Committee, Dr. Janet Yellen, nominated to replace Federal Reserve Chairman Ben Bernanke, said she favors continuing Quantitative Easing III. That program has the Federal Reserve acquiring $85 billion monthly in Treasury securities and mortgage bonds through expanding its balance sheet, in an effort to keep interest rates low.

And this news now results in dividend-paying gold stocks, such as Yamana Gold (NYSE: AUY), Gold Fields (NYSE: GFI) and Newmont Mining (NYSE: NEM) being attractive as both short-term and long-term investments. In the short term, the dividend income stream from each makes the stock appealing in a low interest rate environment. The dividend yield for Yamana Gold is 2.74 percent. For Newmont Mining, it is 2.85 percent. Gold Fields has a dividend yield of 3.04 percent. The average dividend for a member of the Standard & Poor's 500 Index is around 1.9 percent. Ten-year Treasury bonds now yield 2.69 percent.

Source: International Business times

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