“Collect a 8.4% Dividend From a Unique American Gold Investment”

By Travis Johnson, Stock Gumshoe, November 10, 2010

Dividends + Gold = Pretty much 99% of the questions I get from readers in any given day, so the headline of this teaser about getting a “8.4% Dividend From a Unique American Gold Investment” from Ian Wyatt for his Small Cap Investor Pro caught my eye: high dividends and gold? Where do I sign up!?

Not so fast … let’s find out what the heck he’s talking about first, shall we? After all, we know that several of the huge gold miners pay a dividend, though it tends to be paltry at under 1% (even for royalty plays like Royal Gold (RGLD)), and that there are few much smaller miners that start dividend payments from time to time and get everyone excited (like Gold Resource, which is up 50% or so from when I wrote about it for a Lombardi teaser back in August, even though that dividend yield was even tinier) … but you never hear about a high yielding gold miner.

And alas, we’re not hearing about one of those today, either — looks like this is a company that’s only tangentially in the gold business. Let’s listen in on a bit of the