Better Buy: Royal Gold, Inc. vs. Wheaton Precious Metals

Royal Gold, Inc. (NASDAQ: RGLD) and Wheaton Precious Metals (NYSE: WPM) are both gold and silver streaming companies. In fact, they offer a very similar approach to gaining exposure to the precious metals industry. However, they differ in two important ways: diversification and dividend policy. It's the latter issue that's going to be the biggest differentiator for most income investors.

Royal Gold and Wheaton make money by providing miners cash up front for the right to buy gold and silver, and sometimes other metals, at reduced rates in the future. They don't own or operate mines themselves. There's a number of implications, here. First, since they don't own and operate mines, they avoid all of the risks and complications that miners like Newmont Mining and Barrick Gold (NYSE: ABX) face.

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Source: Fool.com