The Globe and Mail attempts to identify dividend paying gold miners with good growth prospect in its Tuesday edition. The Globe's guest columnist Christian Godin writes in the Number Cruncher column that gold is reaching price highs not seen since 2013, because of dovish central banks and the geopolitical volatility caused by the U.S.-China trade war and, most recently, the U.S.-Iran crisis.
Mr. Godin also notes that gold is up 21 per cent over the past 12 months. He expects gold miners to post better results in their next quarterly reports. He says the yield is his "proxy for stable operations and we use the change in net operating profit after tax, or NOPAT, to find growing companies." Mr. Godin's picks needed to have a market capitalization greater than $1-billion. He looked for positive dividend changes over 12 and 24 months. Only 11 gold miners made the grade.
Centamin was the highest dividend payer, but its negative NOPAT change over both 12 and 24 months suggests future dividend growth may not be sustainable.
Newmont Goldcorp, Royal Gold Mining, Yamana Gold and Kirkland Lake Gold all show growing NOPAT over the past 12 and 24 months.
Mr. Godin sees Newmont maintaining and increasing its dividend.
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