Newmont for Income

I purchased Newmont Mining (NEM) at a bit higher level than where it trades today. They've made a great move this week, committing themselves to raising the dividend along with the price of gold. A New Day for Newmont: Gold Producer Makes Game-Changing Announcements

Yesterday, Newmont Mining (NEM) held its analyst day and made a couple of important announcements, one being that it expected production to grow from 5 million to 7 million ounces over the course of the next five years or so, and the other that it would boost its dividend 20 cents for every $100 increase in the price of gold. At today's gold price that means it will pay a divided of about a dollar, which is a yield of approximately 1.7%. But for those folks who are willing to own the stock over time, a $2,000 gold price would create about a 3.5% running yield on a purchase you made today.

You have to skate where the puck will be, not where it is. Miners will produce a lot of income if the price of gold continues to rise, while some other dividend payers of today may decline in the face of inflation. A stock such as NEM is a good balance to a conservative portfolio that lacks metals exposure. This won't be the best gold stock to own, but it's