The Dynamic Dividend

Royal Gold Raises Dividend for 10th Consecutive Year

Royal Gold (RGLD) declared a quarterly dividend of $0.15 per share today, which is a 36% improvement over the $0.11 per share paid each of the previous four quarters by the precious metals (primarily gold) royalty company.

This marks the tenth consecutive year Royal Gold has given its shareholders a raise. Shares of RGLD are currently trading at $79.87, where they now carry a 0.75% dividend yield.

The price of gold has appreciated by more than 20% in 2011, and producers and royalty companies that deal with the yellow metal have been far from stingy with their profits. At least nine such companies have given their shareholders a raise this year:

AngloGold Ashanti (AU) raised its interim dividend by 44% in early August then proceeded to double its payout just three months later.

Yamana Gold (AUY) has been on the biggest dividend-raising tear lately. The Canadian gold producer has raised its dividend five times since the start of 2010, quintupling its payout in the process. Yamana’s latest dividend hike came earlier this month, when the company pushed its payout up by 11% to $0.05 per share… not bad for a company that had never paid its shareholders more than $0.01 per share prior to last summer.

Barrick Gold (ABX) raised its dividend by 25% just last month.

Newmont Mining (NEM), which announced in April that it would tie its dividend rate directly to the price of the yellow metal, made good on its promise by giving its shareholders a 50% raise in July and raising its payout by another 17% last month.  Newmont has raised its dividend three times since the beginning of 2010, more than tripling its payout in the process.

Kinross Gold Corporation (KGC) lifted its semiannual dividend by 20% back in August.

Agnico Eagle Mines (AEM) gave its shareholders a huge 256% raise when the Canadian miner shifted from an annual dividend of $0.18 per share to quarterly payouts of $0.16 per share in 2011.

Gold Resource Corporation (GORO) raised its payout by 33% in April, then tacked on an additional 25% dividend hike in August. The low-cost gold producer, which focuses its efforts in southern Mexico, also officially adopted a monthly dividend policy.

IAMGOLD (IAG) raised its dividend by at least 150% in June, just one year after increasing its payout by 33%.

Goldcorp (GG), another miner that pays its dividend in monthly installments, gave its shareholders an 11% raise back in February. That seems paltry compared to some of the dividend hikes listed above, until you realize the increase came just four months after the Canadian company doubled its payout.