The Canadian gold industry is often overlooked by investors who are seeking long-term capital growth.
Gold stocks are often assumed to be gold mining companies. But Canadian investors can also gain exposure to physical gold through gold stocks and ETFs.
Today, gold is still looked at as one of the more popular ways to hedge against volatility in the currency and equities markets.
Proven ways to evaluate gold stock picks include looking at the company’s valuation multiples like the P/E ratio, revenue growth, dividend yield and growth rate, and the long-term sustainability of its business model.
In this article, we will review our list of the best gold stocks in Canada.
Gold stocks are stocks related to any aspect of the broader gold sector. This can include gold miners, gold processors, and even physical gold.
As Canada is a country that is rich in natural resources, there are plenty of gold-related stocks on the TSX.
Here is our top ten gold stocks list for Canadian investors in 2022.
All of the facts and figures in this article are accurate as of April 2002. Things like dividend yields and market cap are figures that constantly change throughout the year.
Here are the ten Canadian gold stocks we will discuss in the article:
- Barrick Gold Corp (TSE:ABX)
- Agnico Eagle Mines Ltd. (TSE:AEM)
- Franco Nevada Corp (TSE:FNV)
- B2Gold Corp (TSE:BTO)
- Yamana Gold Inc. (TSE:YRI)
- Argonaut Gold Inc. (TSE:AR)
- Wesdome Gold Mines Ltd (TSE:WDO)
- Kinross Gold (TSE:K)
- Alamos Gold (TSE:AGI)
- Centerra Gold (TSE:CG)
- Symbol: ABX.TO
- 52-week trading range: $22.30-$33.50
- Dividend Yield: 1.76%
- P/E Ratio: 19.86
- Market Cap: $51.49 billion
Barrick Gold is one of the largest gold mining companies in the world. It was founded in 1983 and is headquartered in Toronto, Ontario.
Barrick’s stock is a component of the S&P/TSX 60 and also trades on the New York Stock Exchange under the ticker symbol NYSE:GOLD.
Barrick’s two main products are gold and copper mining. The company has operations on several continents including North America, Africa, the Middle East, and Latin America.
Barrick has one of the more steady dividend payouts on the TSX. In 2021, returned a record of $1.4 billion in cash to shareholders.
Barrick had net debt of zero for the second consecutive year in 2021 and also announced a $1 billion share buyback plan for 2022.
- Symbol: AEM.TO
- 52-week trading range: $45.42-$74.50
- Dividend Yield: 2.68%
- P/E Ratio: 25.89
- Market Cap: $26.46 billion
Agnico Eagle Mines is a Canadian gold miner that was founded in 1953 and headquartered in Toronto, Ontario. The company also has operations in Finland, Mexico, and Australia.
Agnico is a component of the S&P/TSX 60 and also trades on the New York Stock Exchange under the ticker symbol NYSE:AEM.
As of 2022, Agnico is the third-largest gold producer in the world and the largest by volume in Canada.
Agnico pays an annualized dividend yield of 2.68% and has paid a quarterly dividend every year since 1983.
Earlier this year, Agnico acquired one of the other largest gold companies in Canada, Kirkland Lake Gold.
- Symbol: FNV.TO
- 52-week trading range: $124.95-$169.32
- Dividend Yield: 0.81%
- P/E Ratio: 40.63
- Market Cap: $30.09 billion
Franco Nevada is a gold-focused royalty and streaming company. This means it is not a gold miner, and instead, it holds precious metal assets in its portfolio.
Gold streaming companies like Franco Nevada provide upfront investments for mining projects. They agree to buy the precious metals at a pre-arranged, usually discounted price.
Franco Nevada began trading on the TSX in 1983, but the current iteration came as the company was acquired by Newmont Mining Corporation.
It is a component of the S&P/TSX 60 and also trades on the New York Stock Exchange under the ticker symbol NYSE:FNV.
Franco Nevada pays an annualized dividend yield of 0.81% and has raised its quarterly dividend for 15 consecutive years.
- Symbol: BTO.TO
- 52-week trading range: $4.21-$6.47
- Dividend Yield: 3.56%
- P/E Ratio: 10.61
- Market Cap: $5.73 billion
B2Gold Corp is a Canadian gold mining company that was founded in 2007 and is headquartered in Vancouver, British Columbia.
B2Gold Corp has projects located around the world, including in key precious metals markets like Finland, Uzbekistan, the Philippines, Colombia, and Namibia.
B2Gold Corp also trades on the US-domiciled NYSE AMERICAN index under the ticker symbol BTG.
The company’s 3.56% annualized dividend yield is one of the highest in the Canadian gold sector.
B2Gold has a strong net positive cash position and has forecasted over $1.76 billion in gold revenues in 2022.
- Symbol: YRI.TO
- 52-week trading range: $4.78-$8.04
- Dividend Yield: 2.01%
- P/E Ratio: 37.03
- Market Cap: $6.83 billion
Yamana Gold is a Canadian precious metals mining company that was established in 1994 and headquartered out of Toronto, Ontario.
Yamana stock also trades on the New York Stock Exchange under the ticker symbol NYSE:AUY and the London Stock Exchange under the ticker symbol LSE:AUY.
It owns and operates mines that process gold, silver, and copper. These operations are located in Canada, Chile, Brazil, and Argentina.
Yamana owns a 50% stake in Canada’s largest gold mine located at the Canadian Malartic OP Mine site.
Argonaut Gold Inc.
- Symbol: AR.TO
- 52-week trading range: $1.98-$4.09
- Dividend Yield: N/A
- P/E Ratio: 22.14
- Market Cap: $758 million
Argonaut Gold is a Canadian company that is involved in mining exploration at various sites in North America.
The company has three producing mines: two of which are located in Mexico and one in Nevada.
Argonaut Gold has four new projects currently in development, three of which are in Mexico and one which is in Ontario.
Compared to the other companies on this list, Argonaut is smaller in scale. The company currently does not pay any dividends to its shareholders.
The stock does have a consensus 12-month price target of $3.56 from a total of ten different analysts.
- Symbol: WDO.TO
- 52-week trading range: $8.90-$16.77
- Dividend Yield: N/A
- P/E Ratio: 14.29
- Market Cap: $1.87 billion
Wesdome Gold Mines is a Canadian gold mining company that was established in 1976 and headquartered in Toronto, Ontario.
Wesdome is a relatively small operation with only two active mining projects both of which are located in Canada.
It has a fairly healthy financial situation with no long-term debt. Still, unlike most other stocks on this list, it does not pay a dividend to its shareholders.
Wesdome produces over 200,000 ounces of gold per year from its two sites and is positioning itself to be Canada’s next mid-tier gold producer.
- Symbol: K.TO
- 52-week trading range: $4.90-$8.34
- Dividend Yield: 2.19%
- P/E Ratio: 31.29
- Market Cap: $6.93 billion
Kinross Gold is a Canadian gold and silver mining company that was founded in 1993 and headquartered in Toronto, Ontario.
Kinross stock trades on the Toronto Stock Exchange under the ticker symbol TSE:K and the New York Stock Exchange under the ticker symbol TSE:KGC.
It operates a total of 8 precious metal mines across North America, South America, Russia, and West Africa.
Kinross Gold pays its shareholders an annualized dividend yield of 2.19%, and in 2021 returned over $250 million to shareholders.
The company is forecasting a 28% growth in gold delivery to 2.65 million ounces in 2022.
- Symbol: AGI.TO
- 52-week trading range: $6.51-$9.38
- Dividend Yield: 1.21%
- P/E Ratio: 25.58
- Market Cap: $3.12 billion
Alamos Gold is a Canadian gold mining company that was established in 2003 and headquartered in Toronto, Ontario.
Alamos Gold also trades on the New York Stock Exchange under the ticker symbol NYSE:AGI.
The company operates three mining sites, two of which are in Canada and the third one is in Mexico.
Alamos also has several developmental projects in the US, Canada, and Turkey, as the company plans for future expansion growth.
It is a debt-free company and pays its shareholders a 1.21% annualized dividend yield on its stock.
Centerra Gold Inc.
- Symbol: CG.TO
- 52-week trading range: $8.21-$13.52
- Dividend Yield: 2.37%
- P/E Ratio: 9.43
- Market Cap: $3.51 billion
Centerra Gold is a Canadian mining company that was founded in 2002 and is headquartered out of Toronto, Ontario.
Centerra also trades on the New York Stock Exchange under the ticker symbol NYSE:CGAU.
Centerra currently owns and operates two mines: the Okust Mine in Turkey and the Mount Milligan Mine in British Columbia.
It has several developmental projects including two more in British Columbia and several more in the US.
In 2021, Centerra produced 308,141 ounces of gold and 73.3 million pounds of copper. It pays a generous 2.37% annualized dividend yield to its shareholders.
How To Buy Gold Stocks in Canada in 2022
You can invest in gold mining stocks in Canada on any brokerage, but consider saving some fees by choosing one of the following discount brokerages.
Questrade is a popular investing brokerage for Canadians that offers individual stock investing for as low as $0.01 per share in trading fees.
Questrade is also known for its commission-free ETF trading for buy orders and a relatively low fee of $4.95 to sell ETFs.
Questrade has a highly rated platform that works on both desktop and mobile devices.
Trade stocks, ETFs, options, etc.
Low and competitive trading fees
Top platform for advanced traders
Get $50 trade credit with $1,000 funding
Wealthsimple Trade is one of Canada’s best known discount brokerages, especially amongst younger investors.
Wealthsimple Trade offers its popular zero-commission trading for Canadian stocks. Rather than paying $9.99 per trade like at big banks, you pay $0 for buying or selling Canadian gold stocks.
Wealthsimple Trade has an easy-to-use, intuitive trading system for both desktop and mobile devices.
Trade stocks and ETFs for free
Available on all devices & legit
Great trading platform for beginners
$150 cash bonus when you trade $300
QTrade is another popular Canadian investment brokerage that features lower trading fees than most big bank brokerages. At $8.75 per trade, fees are still higher than with Questrade or Wealthsimple Trade.
QTrade does offer free ETF investing for the ETFs that are on its designated list.
Trade stocks, ETFs, options, etc.
Competitive trading fees
Excellent customer service
Some free trades for eligible accounts
Gold stocks are just one way of investing in this popular sector. You can buy stocks in gold mining companies, gold producer stocks, and even penny gold stocks.
But you can also diversify by buying Gold ETFs or Gold Mutual Funds. Gold ETFs in particular have lower MERs and are often free to trade on discount brokerages like Wealthsimple Trade and Questrade.
If you choose to, you can even invest directly in physical gold bullion. It’s not as practical to store gold bars at home, but investors use it as a hedge against inflation.
The performance and returns of gold stocks are related directly to the current market price of gold. If the gold price is up, then the company’s margins and profit are higher.
Gold stocks make for a great diversification from equities in other industries. They also generally pay a good dividend yield to shareholders.
Gold stocks might not exhibit the same growth as other sectors, but many gold companies are debt-free and have excellent cash flow.
Choosing the right gold stocks for your portfolio is no different from other sectors.
Look at the multiples like the P/E ratio, free cash flow, and if the company has sustained and continued to raise its dividend.
Check to see if the business operations are also sustainable. Do the companies own their mines? Have production rates increased or decreased? Are margins growing? All of these are excellent questions to ask before buying a gold stock.
The downside of gold stocks is the same as any other focused industry: the performance of the sector relies on the market price of gold.
If gold is in a slump, these stocks will struggle. If a company struggles too much it might even cancel its dividend payouts.
When gold is thriving, it usually means we are in a risk-off market. This could mean the rest of your portfolio is in the red.
Don’t put all of your eggs in one basket. Gold stocks are a great way to diversify your holdings but the stocks rely heavily on the current prices of gold.
Gold stocks are popular amongst Canadian investors due to the strong fundamentals of the companies and great dividend payouts.
Gold stocks offer a hedge against market volatility and inflation.
The gold industry in Canada is thriving and many Canadian gold companies are debt-free and have high cash flow. This usually results in significant shareholder equity through dividends and share buybacks.
Gold stocks are an excellent way to diversify a Canadian stock portfolio and are easy to buy with zero trading fees on brokerages like Wealthsimple Trade, QTrade, and Questrade.