Dividends ‘Best Defense’ Against Bullion ETF, Kirkland Gold Says
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Gold miners should pay more in dividends if they are to compete with exchange-traded funds as two years of record buyouts eroded shareholder value, Kirkland Lake Gold Inc. Chief Executive Officer Brian Hinchcliffe said.
Precious metal producers spent a record $53 billion on deals in 2010 and a further $43 billion last year as all-time high gold prices spurred deals. That led to writedowns that are an admission of overpaying when cash could have been returned in dividends to lure investors from increasingly popular ETFs.