We think that now is a good time for investors to acquaint themselves with or take another look at royalty companies, which make up a sizeable portion of our just-launched U. Royalty companies, sometimes called streaming companies, serve a special role in the mining industry. Developing a mine property to start producing gold or other precious metal is an expensive, time-consuming process. A royalty company serves as a specialized financier that helps Royalty Company List exploration and production projects for cash-strapped mining companies.

When looking over the last 12 months as of March 31, we see that many of the royalty companies we favor have outperformed gold. While this is indeed remarkable, it is important to remember that royalty companies do have a robust business model. Their ability to generate revenue in times when the price of gold, or other precious metal, is both rising and faling is part of what makes them attractive.

We used the real 5-year Treasury yield as a proxy. You can see in the chart below that Royalty Company List rates fell, the price of gold rose, and vice versa. This is another reason why we prefer the royalty model. Since royalty companies set fixed, lower-than-market prices for mining output, they can better manage the volatility that is inherent in the gold market.

Many royalty companies have traditionally reported very high revenue per employee. This is still true. Barrick also falls short by comparison.

Paying dividends is important to investors, as it reflects the health of a company in terms of its cash flow and profits. Between androyalty companies had a combined annual dividend growth rate of 17 percent. We believe royalty companies are better allocators of capital than some of the biggest gold miners.

Take a look at Newmont Mining, which has a 43 percent debt-to-equity ratio, and Barrick, which has a massive 91 percent. By comparison, many of the royalty companies have much lower debt. Franco-Nevada has zero debt. This history of profitability and fiscal discipline Royalty Company List one of the main reasons we find royalty companies so attractive. Our recently-launched U. Global Go Gold and Precious Metal Miners Index GOAUXprovides investors Royalty Company List to companies engaged in the production of precious metals either Moore Water Company active mining or production or passive owing royalties or production streams means.

Because some of them historically taken on very little debt and have offered increased dividends, royalty companies may be an attractive option for precious metals investors. Explore GOAU today!

All opinions expressed and data provided are subject to change without 8 A Company. Some of these opinions may not Royalty Company List appropriate to every investor. The Philadelphia Gold and Silver Index XAU is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver. It is not possibly to invest directly in an index.

There is no guarantee that the issuers of any securities will declare dividends in the future or that, if declared, will remain at current levels or increase over time. Cash flow is the total amount of money being transferred into and out of a business, especially as affecting liquidity.

Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies.

Here are the top six things we believe investors should know about this specialized sector. What Is a Royalty Company? Many Gold Royalty Companies Have Still Been Outperforming Gold When looking over the last 12 months as of March 31, we see that many of the royalty companies we favor have outperformed gold. Speaking of Revenue… Many royalty companies have traditionally reported very high revenue per employee.

Attractive Dividend Growth Paying dividends is important to investors, as it reflects the health of Royalty Company List company in terms of its cash flow and profits. Less Reliance on Debt We believe royalty companies are better allocators of capital than some of the biggest gold miners.

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