Better Buy: Franco-Nevada Corporation vs. Wheaton Precious Metals
Gold and silver streaming companies Franco Nevada Corporation (NYSE: FNV) and Wheaton Precious Metals (NYSE: WPM) have very similar business models. Where they differ most is in their dividend policies. My preference here is Franco Nevada, but Wheaton Precious Metals could be the right choice for you. Here's what you need to know.
The first thing to understand about this pair of precious metals companies is that they are not miners. Franco Nevada and Wheaton Precious Metals are streaming companies. That means they provide miners with cash up front for the right to buy gold and silver in the future at reduced rates. This allows them to avoid the risks of operating mines and lets them lock in low prices and high margins through the cycle.
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Source: Fool.com