Best Canadian Gold Stocks: Hedge Your Portfolio Against Inflation

Photo of author

Dividend Earner

Updated on

2 min read Affiliate Disclosure

Investing in Gold can be ‘seen’ as a safe haven for many when confidence is low in the markets and in the economy. Gold value per ounce is a regular metric being shared globally through daily news alongside a country’s currency and oil prices.

Regardless of your motivation to invest in gold, there are a number of ways to be exposed to gold; from buying gold bullion to investing in gold mining companies to investing in precious metal ETFs. In some cases, you can even have a dividend paying gold mining stocks.

Here are your Canadian gold investing options – jump ahead to read more:

Invest in Gold Bullion

If you want to own gold as is, then the bullion is for you. Investing in gold bullion is similar to buying currency in a way. You buy it at a certain price and hold it until you want to sell. Gold prices fluctuate over time and it’s rated by the ounce.

To buy gold bullion, you can always use the Canadian Mint. There is a lot of information for buying, storing and trading precious metals with the Canadian Mint.

Invest in Gold ETFs

Above is just a few of the gold producing companies out of many. Newmont, Barrick Gold, and Franco-Nevada are really the top three major dividend paying stocks if you want to invest in individual stocks.

If you are just getting started with gold, it might be easier to just get a gold ETF and buy a little bit of the many gold producers through an ETF. XGD from iShare tracks the S&P/TSX Global Gold Index Fund and contains 39 holdings. 

iShare Gold ETF
Source: iShares S&P/TSX Global Gold Index ETF

Invest in Gold Dividend Stocks

These are some of the major players in the gold mining industry that paid a dividend with some amount of consistency. There are at least 13 dividend gold stocks on the TSX from what I can see today but only 4 have increased the dividend for more than 1 consecutive years.

Gold stocks tend to be inconsistent with dividends but again that’s not usually the reason for someone to invest in gold.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
NGT TSE:NGT Newmont 46.12 0.00 5.25 NO 1 1 46
ABX TSE:ABX Barrick Gold 37.95 14.00 2.58 YES 1 1 46
FNV TSE:FNV Franco-Nevada Corp 31.61 30.37 1.07 YES 1 1 46
AEM TSE:AEM Agnico Eagle Mines 26.64 24.25 3.79 YES 1 1 46
WPM TSE:WPM Wheaton Precious Metals Corp 20.20 20.25 1.86 YES 1 1 46
K TSE:K Kinross Gold 6.76 0.00 3.19 NO 1 1 46
YRI TSE:YRI Yamana Gold 6.01 16.57 2.66 NO 1 1 46
BTO TSE:BTO B2Gold 4.72 9.15 4.98 NO 1 1 46
AGI TSE:AGI Alamos Gold 4.01 56.54 1.35 NO 1 1 46
OR TSE:OR Osisko Gold Royalties 2.60 0.00 1.56 NO 1 1 46
CEE TSE:CEE Centamin PLC 1.61 0.00 4.98 NO 1 1 46
DPM TSE:DPM Dundee Precious Metals 1.17 5.17 3.60 NO 1 1 46

1. Agnico Eagle Mines

Agnico Eagle is a leading gold miner having an extensive experience of more than 60 years. The company has mines in Canada, Finland, and Mexico. Agnico’s exploration activities are conducted across these countries as well as in the US and Sweden. The company focuses on low cost high potential regions to drive future growth.

Agnico has a sound track record of exceeding its production targets. It produced 1.63 million ounces of gold and outperformed its cost guidance by approximately 2% in the last year. As an operator of high-quality gold mining business, Agnico has superior quality gold reserves and its gold grade is more than double that of its peers in North America.

The company is expecting to drive a new growth phase, over the next five years, on the back of its current project pipeline. It provides its shareholders with full exposure to gold prices.

Key Investment Data

  • Ticker: TSE:aem
  • Sector: Basic Materials
  • Industry: Gold
  • Market Cap: 26.64B
  • Market Cap Group: Large Cap
  • P/E: 24.25
  • Dividend Yield: 3.79%

2. Dundee Precious Metals

Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged in the acquisition, exploration, development, mining, and processing of precious metals. DPM’s principal subsidiaries include: DPM Chelopech,  DPM Krumovgrad, and DPM Tsumeb.

The company is committed to maximizing the value of their existing operating assets through exploration, development, and optimizing their operational output is a key component of their strategy. To that end, DPM has assembled and continues to grow a pipeline of mining and processing projects at various stages of development that will ultimately serve to fuel further growth.

Their business strategy is unlocking resources and generating value to thrive and grow together. It’s supported by a foundation of core values that guide how DPM conducts its business and informs a set of complementary strategic pillars, as well as having resources allocated in-line with strategy to ensure DPM delivers value for all stakeholders.

Key Investment Data

  • Ticker: TSE:DPM
  • Sector: Basic Materials
  • Industry: Gold
  • Market Cap: 1.17B
  • Market Cap Group: Small Cap
  • P/E: 5.17
  • Dividend Yield: 3.60%

3. B2Gold

B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, B2Gold has three operating gold mines and numerous development and exploration projects in various countries including Mali, the Philippines, Namibia, Colombia, Finland, and Uzbekistan.

Their 2020 consolidated gold production was 1,040,737 ounces. B2Gold’s strategic focus continues to be on generating significant growth in gold production, revenues, and cash flow by focusing on organic growth, including optimizing production from their existing gold mines, continuing exploration at and around their mines, and pursuing grassroots exploration opportunities.

They recognize the risks and impacts associated with their business can be complex and that their management requires cross-functional collaboration among their departments and their various stakeholders. Their process for risk management aligns with the Precautionary Principle and includes identifying, evaluating, and addressing economic, social, and environmental risks and opportunities for their projects and operations.

Key Investment Data

  • Ticker: TSE:BTO
  • Sector: Basic Materials
  • Industry: Gold
  • Market Cap: 4.72B
  • Market Cap Group: Mid Cap
  • P/E: 9.15
  • Dividend Yield: 4.98%

4. Franco-Nevada

Franco Nevada is the leading gold-focused royalty and stream company. It is the largest company by both gold revenue and the number of gold assets. The company provides financing to miners in exchange for the right to buy gold at contractually discounted rates in the future and in return gets access to precious metals without any mining work.

Franco Nevada is the world’s largest and most successful gold royalty company. The company’s portfolio is highly diversified by commodity, geography, revenue type, and projects. Franco Nevada has interests in 227 exploration stage mineral properties including 202 precious metals assets and 25 other exploration assets.

Over 88% of Franco’s revenue (Q1 2019) was derived from gold and gold equivalents (63% gold, 11% silver, 11% PGM and 3% other mining assets) and 12% from energy (oil, gas, and NGLs). Geographically, Americas is its largest market accounting for over 80% of total revenues - 42% Latin America, 18% U.S. and 20% Canada, followed by the rest of the world.

Key Investment Data

  • Ticker: TSE:fnv
  • Sector: Basic Materials
  • Industry: Gold
  • Market Cap: 31.61B
  • Market Cap Group: Large Cap
  • P/E: 30.37
  • Dividend Yield: 1.07%

Build Your OWN Top List

My portfolio is generating over 12% annual returns since 2009. It's not from the beginning of the year or from 2019, it's from 2009 !!! That's a consistent return which means using the rule of 72, I double my portfolio every 6 years.

My approach is simple but you need key data that I have cultivated with the Dividend Snapshot Screeners. No other investment services provide you with easy to understand data but also actionable data. No hidden magic.

In fact, I have tried all of the investment services for dividend investors like a crash test dummy of investment services. Just ask me, and you'll learn why there was nothing I could use out there and build the Dividend Snapshot Screeners.

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.