Top Canadian Silver Stocks To Consider (Sep 2024)

While many investors have exposure to assets like gold in our portfolios, there is a strong argument to add exposure to silver as well.

Investing in precious metals has long been seen as a safe haven and hedge against inflation and market volatility.

Given the strong presence of commodities and mining stocks on the TSX, Canadian investors have a long list of silver stocks to add to their portfolios.

This article will cover my picks for the top 5 Canadian silver stocks to consider in September 2024.

1. Wheaton Precious Metals (TSE: WPM)
2. Pan American Silver Corp (TSE: PAAS)
3. First Majestic Silver Corp (TSX: FR)
4. Endeavour Silver Corp (TSE: EDR)
5. Silvercorp Metals Inc (TSE: SVM)

Please note that all stats and figures are accurate as of September 2023.

Best Silver Stocks To Buy in Canada 2024

1. Wheaton Precious Metals

Here are some key facts for Wheaton Precious Metals stock:

• Ticker Symbol: TSE:WPM
• Market Capitalization: $26.61 billion
• 52-Week Trading Range: $39.41 – $71.39
• Dividend Yield: 1.39%
• One Year Return: +44.89%

Wheaton Precious Metals is one of the largest silver companies in Canada and is triple-listed on the TSX, the NYSE, and the LSE in the United Kingdom. It currently has 19 operating mines and 13 projects in development. 

This company is a precious metals streamer for both gold and silver. It partners with some of Canada’s largest silver mining companies, including First Majestic Silver Corp and Pan American Silver Corp. Its gold mining partners include Barrick Gold, Newmont Corp, and Glencore plc.

Operating in the silver and gold industries brings predictable high-profit margins and cash flow. This allows Wheaton to pay out a solid quarterly dividend to its shareholders, which is composed of a floor dividend yield plus 30% of the average cash flow from the previous four quarters. In 2022, for every ounce of metal Wheaton produced, it returned $435.00 to shareholders as dividends. 

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2. Pan American Silver Corp

Here are some key facts for Pan American Silver Corp stock:

• Ticker Symbol: TSE:PAAS
• Market Capitalization: $8.07 billion
• 52-Week Trading Range: $18.14 – $26.54
• Dividend Yield: 2.45%
• One Year Return: +14.36%

Pan American Silver Corp is one of the world’s largest silver mining producers. It is based out of Vancouver, BC, but most of its mining operations are in Latin America.

This company operates eight full-time mining projects, with 44% of its revenues coming from Peru, 29% from Mexico, 15% from Canada, 7% from Argentina, and 5% from Bolivia. It holds over 514.9 Mozs of physical silver in its reserves and 3.6Mozs of gold.

Despite the name Pan American Silver Corp, the company saw 60% of its 2021 revenue from gold. In 2022, 49% of its physical precious metal reserves are in silver, with additional exposure to gold, copper, zinc, and lead. These figures should continue to rise in favour of gold due to the acquisition of the Yamana mines. 

Pan American has a strong management team, a diversified portfolio of assets, and high cash flow that allows it to pay out a generous quarterly dividend to shareholders.

3. First Majestic Silver Corp

Here are some key facts for First Majestic Silver stock:

• Ticker Symbol: TSE:FR
• Market Capitalization: $2.33 billion
• 52-Week Trading Range: $6.90 – $13.04
• Dividend Yield: 0.34%
• One Year Return: -13.91%

First Majestic Silver is a Canadian-based silver mining company that operates primarily in Mexico and the United States. The stock is dual-listed on the TSX and the NYSE under the ticker AG.

Its primary operations are in Mexico, the world’s largest market for raw silver production. It currently has four mines in operation and four projects in production, which will boost its production over the next few years.

The stock has about 25% ownership by major institutional investors, including several ETF companies like Vanguard, Van Eck, and Blackrock. 

4. Endeavour Silver Corp

Here are some key facts for Endeavour Silver’s stock:

• Ticker Symbol: TSE: EDR
• Market Capitalization: $721.98 million
• 52-Week Trading Range: $3.40 – $6.08
• Dividend Yield: N/A
• OnSie Year Return: +2.45%

Endeavour Silver Corp is a Vancouver-based silver mining company that was founded in 2004. The company operates in Mexico, Chile, and the United States, where it has a total of 5 different mines. 

As with other companies on this list, Endeavour produces both gold and silver. For the first half of 2023, Endeavour had a revenue split of 67% from silver and 33% from gold. 

Unlike other companies on this list, Endeavour does not pay out a dividend to its shareholders. Some of the largest institutional holders of the stock include Van Eck, TD Asset Management, and BMO Asset Management. 

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5. Silvercorp Metals Inc 

Here are some key facts for Silvercorp Metals’ stock:

• Ticker Symbol: TSE: SVM
• Market Capitalization: $620 million
• 52-Week Trading Range: $2.74 – $5.59
• Dividend Yield: 0.95%
• One Year Return: +21.03%

Silvercorp Metals is another Vancouver-based silver mining company that was founded in 1991. The stock is dual-listed on both the TSX and the US-domiciled NYSEAMERICAN exchange. 

This company operates primarily in China and owns several silver mines that produce silver, lead, and zinc. Silvercorp has also recently acquired projects in Australia and Tanzania as well.

Silvercorp pays out a minimal dividend yield of 0.95% and is owned by some of the largest institutional shareholders in the world, including Van Eck, Blackrock, and Global X Management. 

How To Buy Silver Stocks in Canada

Interested in investing in the best silver stocks in Canada? Luckily, all of these TSX silver stocks are available at Canadian brokerages.

I like to use low-cost or commission-free brokerages to save on trading fees. Here are the steps I would follow to buy silver stocks or any other stock:

1. Open up an account at a preferred Canadian discount brokerage
2. Transfer in fees to begin buying Canadian silver stocks
3. Research the top Canadian silver stocks in 2024
4. Purchase shares and add them to my investment account
5. Hold these silver stocks as a part of my diversified equities portfolio for the long-term

Some of the best trading platforms in Canada include:

Investing in Silver

Silver stocks can offer great stability for your investments, even if they aren’t as popular as gold stocks.

There are plenty of different ways to invest in silver. These assets include silver stocks, silver ETFs, physical silver bullion, and silver futures contracts.

For this article, I focused on silver stocks, which generally refer to silver mining companies or silver streaming companies.

Silver mining stocks are for companies that engage in the exploration, mining, and production of physical silver. Meanwhile, silver streaming companies provide capital to silver mining companies and a right to purchase that physical silver directly from them.

Are Silver Stocks a Good Investment?

SIlver stocks make for an excellent addition to your portfolio, particularly for Canadian investors who reap the rewards of living in such a resource-rich country.

Investing in precious metals adds stability to your investments and provides a nice hedge against inflation.

While silver stocks typically aren’t as popular as gold stocks, many industries use more silver these days, including electric vehicles and renewable energy infrastructure.

With that being said, this article on the top Canadian silver stocks should not be used as financial advice and only as a starting point for researching these companies.

Downsides of Investing in Silver Stocks

As with most commodities, silver stocks will see their performance based on the market price for silver bullion.

If demand for silver suddenly falls, so will the price of silver mining companies. This is one reason why silver stocks do not trade according to the broader market performance.

Best Canadian Silver ETFs

Have trouble deciding on one or two particular silver stocks? Check out my list of the five best Canadian silver ETFs to look at instead:

1. iShares Silver Bullion ETF (TSE: SVR)
2. Horizons Silver ETF (TSE: HUZ)
3. Purpose Silver Bullion Trust ETF (TSE: SBT)
4. iShares Silver Trust (NYSEARCA: SLV)
5. Abrdn Physical Silver Shares ETF (NYSEARCA: SIVR)

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Conclusion

Silver is often seen as the younger sibling to gold, and it is treated that way in the financial markets.

But many industries are seeing a rise in demand for silver, which should positively affect the price over the long term.

Adding silver stocks to your portfolio adds precious metals diversity and stability against inflation and market volatility. I prefer to buy my top Canadian silver stocks from one of Canada’s top discount brokerages.

Related: Best Commodity ETFs in Canada.