Gold Mining Stocks (ABX, KGC, AU)
The final entries among the disappointing dividend stocks of 2013 all came from the gold mining sector, and as such, I didn’t want to pick on just one.
Given that 2013 was the first down year for gold in a very long time, it should come as no surprise that gold mining stocks suffered in sympathy. That suffering caused the biggest gold producer, Barrick Gold (ABX), to cut its payout, which it announced on Aug. 1. ABX also took a writedown in the previous quarter, citing slumping bullion prices.
A day earlier, Kinross Gold (KGC) suspended its semiannual dividend, and it also announced a delay in its decision on future expansion of the mill at the Tasiast mine in Africa. Finally, about a week later, AngloGold Ashanti (AU) — the third-largest producer of the yellow metal — suspended its dividend on poor earnings due to declining gold prices.
With the luster now off on gold, the dividend income from mining stocks also is dead. I say scrap this dividend sector in 2014 until the shine returns.
- Read More: 5 Sure-Fire Dividend Stocks to Buy
As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.