Randgold Resources (RRS) has led the FTSE 100 higher after announcing a 52% hike to its dividend to $1 per share after a 76% rise in fourth quarter profits.
Shares in the gold miner jumped 4.9%, leading the UK blue-chip index, which was up 13 points, or 0.2%, at 7,202.
'Today's massive dividend hike is at the heart of what makes Randgold attractive to investors; unlike most gold investments, it pays investors to wait - albeit not very much,' said Nicholas Hyett, equity analyst at Hargreaves Lansdown.
'The group has once again demonstrated its ability to keep a firm grip on costs, even as production increases, and is taking steps to refresh the portfolio. However, while the group's high quality, low-cost mines aim to be profitable at $1,000 an ounce, a price we haven't seen since the financial crisis, it remains a play on the gold price, and that brings risks.'
Randgold's results also helped lifted fellow precious metal miner Fresnillo (FRES) 1.8% higher to £14.96.
'As Randgold hits a three-month high, Fresnillo and Glencore (GLEN) have also been pushed upwards as expectations of their gold earnings are increased,' said Michael Hewson, chief market analyst at CMC markets UK.
'Fresnillo only recently logged record gold and silver output for 2016, and so could well outperform, despite recent downgrades by analysts at Citigroup.'
Mediclinic International (MDCM) was the other big FTSE 100 rise, up 3.4% at 815.5p after analysts at Macquarie raised their rating on the private hospital group to 'outperform'.
Dixons Carphone (DC) was the biggest faller on the index, down 2.1% at 298.1p, after company bosses sold some of their shares in the company.
House builders were on the back foot ahead of the launch of the government's new housing strategy tomorrow. Housing minister Gavin Barwell said at the weekend the UK had become 'too dependent' on a 'small number of large developers', and scotched rumours green belt rules would be changed.
'This means that policy changes may not be transformational to the major house builders, but getting more rental units constructed would help material companies (especially the brick stocks, which have purest residential exposures) if it proves successful,' said analysts at Liberum.
Taylor Wimpey (TW) fell 1.3% to 170.4p, Barratt Developments (BDEV) was down 1.1% at 495.9p and Persimmon (PSN) dropped 1.1% to £19.51.
Among 'small cap' stocks, Lindsell Train (LTI ) soared 7.8% to 818.4p, amid a recovery of the investment trust's heavy premium, which fell below 30% last week, having reached as high as 76% over the last 12 months.