Source: Gold Footpath by George Hodan
Rio Tinto plc (ADR) (NYSE:RIO)
Anglo-Australian miner Rio Tinto plc (ADR) (NYSE:RIO) has consistently grown its dividend over the past few years, which is a trend not likely to end anytime soon. At over 4%, the company’s semi-annual dividend is well covered by it’s diversified mining revenue. That being said, the miner has been hit by asset impairment inspired losses after two major acquisitions failed to pan out as planned. These botched deals mean that Rio has a long comeback ahead of it as it tries to prudently grow while still rewarding shareholders by its generous dividend.
Newmont Mining Corp (NYSE:NEM)
With a current yield of 4.05%, gold and copper miner Newmont Mining Corp (NYSE:NEM) offers investors a top dividend yield. However, in light of falling gold prices, that dividend isn’t likely to head much higher. Newmont has instead been conserving capital by cutting costs. Overall, spending is down 13% year-over-year with capital spending taking the biggest hit as it has been cut by 31%. While that will help the company’s profitability, it’s dividend policy is tied to the price of gold. For you gold bulls out there, if prices rise above $2,000 an ounce Newmont investors could see an annualized dividend of more than $3.00 per share, which would double the current rate.
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)
Copper and gold miner Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) has endured a difficult year. It had to work hard to close its massive oil and gas acquisitions while also dealing with falling gold and copper prices. The only real solace for investors has been the company’s 4.05% dividend. The good thing here for Freeport investors is that the oil and gas acquisitions take some risk out of its business as it reduces the company’s exposure to mining from 100% down to 74%. The company believes it has the assets in place to maintain a strong balance sheet, continue its current dividend while also growing its business.
Final Foolish thoughts
The mining industry is filled with golden opportunities to add income to your portfolio. These five top-paying stocks offer a great place to start to a journey as you search for dividend gold. One final thought, many miners pay investors bi-annually or have dividends that vary based on profits which is why its important that you understand the payout policy before committing any capital.
The article 1 Dividend-Focused Industry Keeps the Yields Growing originally appeared on Fool.com.
Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Companhia Vale Ads and Freeport-McMoRan Copper & Gold.
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