This is purely a speculative play and a hedge. IAMGold cut its dividends recently and currently this is the only position in my portfolio that does not yield anything. However, instead of selling like others, I am holding on and in fact adding to my position. IAMGold is one of the most efficient mining companies and still manages to do well compared to its peers. It is also attractively valued, trading well below its book value. Why own IAMGold? I have multiple reasons – (a) it is an inflation hedge, (b) it provides me with some hedge against a stock market drop, (c) it is attractively valued trading well below book value and very low debt (0.17) and (d) it could possibly be a target of acquisition.
Addition: Kinder Morgan Inc (KMI)
I added to my position in Kinder Morgan Inc (KMI). I had started with a small position earlier in the month and have increased it after some weakness in the market over the last few days. After this transaction, I own 60 shares giving me $98.40 in annual distribution income from KMI. I want to add more to this position and will be looking for weakness in the market/stock to pull the trigger.