Best Canadian Dividend Gold Stocks

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.

TickerKeyTickerCompanySectorIndustryScoreQuoteMarket CapP/EFPEEPSYield RawYieldPayoutRatioPaymentsDividendChowderGrowthRatingIncomeRatingTollboothAmbassadorAchieverAristocratKingCountryGraph
TSE:ABXABXBarrick GoldBasic MaterialsGold0.3838.0251.3711.5411.543.290.01111.110.128440.320.011115IntermediateNONONONOCanada1
TSE:FNVFNVFranco-Nevada CorpBasic MaterialsGold0.52188.0135.83128.37128.371.460.00730.730.940541.040.051366IntermediateYESYESYESNOCanada1
TSE:WPMWPMWheaton Precious Metals CorpBasic MaterialsGold0.3867.5322.9565.0165.011.040.00780.780.507840.400.075133IntermediateNONONONOCanada1
TSE:AEMAEMAgnico Eagle MinesBasic MaterialsGold0.51106.0919.5039.3739.372.690.01001.000.392740.800.124455IntermediateNONONONOCanada1
TSE:OROROsisko Gold RoyaltiesBasic MaterialsGold0.3717.142.840.000.00-1.360.01171.171.000040.200.088952IntermediateNONOYESNOCanada1
Dividend Adjusted Chart by StockRover.

1. Barrick Gold

Barrick Gold is a leading gold mining company in the world. The company engages primarily in gold and copper operations as well as exploration and mine development. Barrick Gold’s recent merger with Randgold Resources has created a sector-leading gold mining company. Barrick Gold owns five of the world’s Top 10 Tier 1 gold assets such as Cortez and Goldstrike in Nevada, USA and Kibali mine in Africa. The company has mining operations in 15 countries, including Argentina, Australia, Canada, Chile, the US, Saudi Arabia, Zambia, etc. Barrick Gold sells its products in the world market through different distribution channels like the gold spot market and independent smelting companies. The company is the owner of a diversified asset portfolio located in many of the world’s richest gold areas. Barrick has the lowest cash cost position amongst its peers.

Investment Data

2. Franco-Nevada

TSE:FNV - Franco-NevadaFranco 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.

Investment Data

3. Wheaton Precious Metals Corp

WPM - Wheaton Precious Metals CorpWheaton Precious Metals is the world’s largest pure streaming company providing exposure primarily to silver and gold. Wheaton has come a long way from just being a silver focused company to one with a large portfolio comprising of 26 assets and a balanced production profile. The company currently has streaming agreements for 19 operating mines and nine development stage projects. It operates a portfolio of low-cost and long-life assets, with over 30 years of mine life based on reserves, having high silver and gold production base. Wheaton’s assets include a gold stream on Vale’s Salobo mine, silver streams on Glencore's Antamina mine and Newmont Goldcorp's Penasquito mine. Wheaton reduces many of the downside risks faced by traditional mining companies. The company incurs no capital or exploration costs as it procures by-product precious metals from a mine that it does not own, for an upfront predetermined payment. These are typically multi-year agreements and are contractually set at the time of the stream, granting more visibility and reducing risk.

Investment Data

4. 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.

Investment Data

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.
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