Every gold coin has two sides

To a lesser extent, dividends have increasingly made up more of the index level, increasing from 1.97% in 2009 to 2.19% last year.

Companies have become focused on the return-on-capital model, such as revenues-per-share and earnings-per-share, which may reflect the way CEO compensation has changed over the past two decades.

Previously, executives primarily received option grants, which incentivize them to focus on the short-term stock price.

However, as you can see below, while the percentage of CEOs receiving options has been declining slightly, the percentage of CEOs receiving restricted stock grants has jumped considerably. This means that the executives’ interests are more in line with shareholders’ and are incentivized to think about total return and dividend payments.

In today’s investment environment with low yields, savvy investors will continue to look for safe havens and better yielding alternatives, with the fortunate recipients being gold and dividend-paying stocks.

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About the Author
Frank Holmes

Frank Holmes is CEO and chief investment officer of US Global Investors. This first appeared in his Frank Talk blog. For more updates on global investing from Frank and the rest of the U.S. Global Investors team, follow on Twitter at www.twitter.com/USFunds or like on Facebook at www.facebook.com/USFunds. You can also watch exclusive videos on what research overseas has turned up on the U.S. Global YouTube channel at www.youtube.com/USFunds.

US Global Investors, Inc. is an investment management firm specializing in gold, natural resources, emerging markets and global infrastructure opportunities around the world. The company, headquartered in San Antonio, Texas, manages 13 no-load mutual funds in the U.S. Global Investors fund family, as well as funds for international clients.

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