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 considered 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.
Best Canadian Gold Stocks for 2023
All of the facts and figures in this article are accurate as of January 2023. 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)
- Dundee Precious Metals (TSE: DPM)
- Wesdome Gold Mines Ltd (TSE: WDO)
- Kinross Gold (TSE: K)
- Alamos Gold (TSE: AGI)
- New Gold Inc (TSE: NGD)
Barrick Gold Corp
- Symbol: ABX.TO
- 52-week trading range: $17.88-$33.50
- Dividend Yield: 2.15%
- P/E Ratio: 17.55
- Market Cap: $44.33 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.
The company’s two main products are gold and copper mining. The company operates on several continents, including North America, Africa, the Middle East, and Latin America.
It has one of the more steady dividend payouts on the TSX. In 2021, returned a record $1.4 billion in cash to shareholders. In 2022, Barrick surpassed this figure by returning equity to shareholders, including a $1 billion share buyback plan.
Agnico Eagle Mines Ltd
- Symbol: AEM.TO
- 52-week trading range: $36.68-$74.50
- Dividend Yield: 2.88%
- P/E Ratio: 37.45
- Market Cap: $25.33 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.
It 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 2.88% 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.
Franco Nevada Corp
- Symbol: FNV.TO
- 52-week trading range: $151.08-$216.32
- Dividend Yield: 0.92%
- P/E Ratio: 37.00
- Market Cap: $37.75 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 0.92% and has raised its quarterly dividend for 16 consecutive years.
B2Gold Corp
- Symbol: BTO.TO
- 52-week trading range: $3.84-$6.39
- Dividend Yield: 3.94%
- P/E Ratio: 18.83
- Market Cap: $5.96 billion
B2Gold Corp is a Canadian gold mining company that was founded in 2007 and is headquartered in Vancouver, British Columbia.
It 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 3.94% annualized dividend yield is among the highest in the Canadian gold sector.
B2Gold saw a total annual gold revenue of $1.733 billion for 2022 and projects the production of between 1,000,000 and 1,000,080 ounces of gold in 2023.
Yamana Gold Inc.
- Symbol: YRI.TO
- 52-week trading range: $5.04-$8.20
- Dividend Yield: 1.99%
- P/E Ratio: 22.44
- Market Cap: $7.81 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.
Dundee Precious Metals Inc
- Symbol: DPM.TO
- 52-week trading range: $5.40-$8.97
- Dividend Yield: 2.45%
- P/E Ratio: 21.46
- Market Cap: $1.67 billion
Dundee Precious Metals is a diversified gold mining company that has projects located in Ecuador, Serbia, Namibia, and Bulgaria.
As of the end of 2022, Dundee had a net cash position of over $420 million with a 28% cash flow. In 2022, Dundee returned over $37 million to shareholders.
The company has an average annual gold production of 270,000 oz. Dundee also has some copper output as well as smelting operations.
Dundee’s current dividend yield is at 2.45%, and its quarterly dividend has doubled since 2020.
Wesdome Gold Mines Ltd
- Symbol: WDO.TO
- 52-week trading range: $6.27-$16.77
- Dividend Yield: N/A
- P/E Ratio: 97.12
- Market Cap: $950 million
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.
Kinross Gold
- Symbol: K.TO
- 52-week trading range: $3.92-$7.99
- Dividend Yield: 2.56%
- P/E Ratio: N/A
- Market Cap: $7.89 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 on 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. These projects produce an average annual volume of 2 million ounces of gold each year.
Kinross Gold pays its shareholders an annualized dividend yield of 2.56%. In 2022, Kinross executed a $300 million share buyback plan and projects 75% of free cash flow in 2023 and 2024 will be returned to shareholders.
Alamos Gold Inc
- Symbol: AGI.TO
- 52-week trading range: $8.31-$15.25
- Dividend Yield: 0.91%
- P/E Ratio: 167.12
- Market Cap: $5.84 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. Its average mine life of Canadian operations is 17 years and in totality, the mines have a potential long-term production of 800,000 oz of gold on an annual basis.
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 0.91% annualized dividend yield on its stock.
New Gold Inc.
- Symbol: NGD.TO
- 52-week trading range: $0.80-$2.57
- Dividend Yield: N/A
- P/E Ratio: 7.59
- Market Cap: $1.02 billion
New Gold Inc is a Toronto-based mining company that was established in 1980.
The company operates two Canadian mining projects: one in British Columbia and one in Ontario. These two mines produce gold and silver, and additionally, the British Columbia mine also produces copper.
On an annual basis, New Gold produces about 91,000 ounces of gold and $151 in total annual revenue in 2022.
New Gold holds $247 million in cash and assets and a $620 million liquidity positon as of the end of 2022. The stock does not currently pay a dividend to shareholders.
What is a Gold Stock?
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.
How To Buy Gold Stocks in Canada in 2023
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
Questrade is the best discount brokerage in Canada. It 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.
Questrade
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
Wealthsimple Trade is one of Canada’s best-known discount brokerages, especially among 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
Trade stocks and ETFs for free
Great trading platform for beginners
$25 cash bonus when you deposit $200+
Transfer fees waived up to $150
How To Invest in Gold
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.
Are Gold Stocks a Good Investment?
The performance and returns of gold stocks are related directly to the current market price of gold. If the gold price is up, the company’s margins and profit are higher.
Gold stocks make for 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.
How To Pick Gold Stocks For Your Portfolio
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.
Downsides of Gold Stocks
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 thrives, 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.
Conclusion: Best Gold Stocks in Canada
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.
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