RE:RE:RE:London callingRONNIE111 wrote:
The other thing is that most people don't buy gold companies for the dividend. And I suspect that dividend ETFs don't have gold companies very high on their list of possible dividend companies to include in their ETF.
I'm not sure of the taxation details. I do know if it means you are still paying the same amount of corporate tax, just because you are not paying it in Canada the shareholder will get less of the same pie if ineligible dividends.
I have strongly maintained for years that there is NO point investing in a gold company that does not return $$$ to shareholders over the long run. They have a tendency to continually eat themselves up - they cannot continue to use profits to soley replenish reserves and pad the upper management. And that's quite typical of small - medium size gold producers. But it makes zero sense. You may invest in a company for growth but that's only for a period of time before one expects it to be profitable and dishing out funds to shareholders.
The dividend is a very good decision. So is the share buy back plan. Both return $$$ to shareholders.
Also, there are many many ETF's that require a dividend for inclusion. Whether the ETF would like to own a gold company (say for the expected capital gain in a gold bull market), they can't if no dividend.
tC