9 Best Gold Stocks in Canada (Oct 2022)

Are you looking to invest in Canadian companies that deal with gold on a day-to-day basis? There are a lot of great options to consider here at home.

In Canada, gold was the top commodity by value of production, with a value of $12.3 billion in 2020.

Gold stocks refer to the shares of companies (mainly mining companies) that are involved in some way with the precious metal.

We’ll cover the best gold stocks in Canada below and discuss them in more depth.

Pros and Cons of Investing in Gold Stocks

Gold stocks have specific characteristics that make them stand out when compared to other stocks. These features come with their pros and cons.

Pros
  • A high dividend rate that can lead to good income over time
  • Large upside if the price of gold is increasing and business is stable
  • They are large and mature companies that are trading at relatively lower valuations (P/E)
Cons
  • Gold needs to stay above a break-even price in order for operations to stay profitable
  • Risk of poor corporate management, unsuccessful mining, or geopolitical issues
  • Gold companies tend to be much more volatile than the price of physical gold

Best Gold Stocks in Canada

1. Barrick Gold Corporation

Barrick gold logo
  • Ticker: ABX.TO
  • Forward Dividend Yield: 5.33%
  • Dividend Payout Ratio: 33.63%
  • Dividend Yield (12-Month Trailing): 1.8%
  • Upcoming Dividend Date: Sep 15, 2022
  • Market Cap: $38.29 Billion
  • Forward P/E Ratio: 16.17
  • Average Analyst Rating: 2.1 - Buy

Barrick Gold Corporation is a Canadian gold and copper company with a long publicly-traded track record. It is a large gold company based on its market capitalization

Barrick is one of the lowest all-in sustaining cost (AISC) producers, substantially below its peer group. This means that the company can likely remain profitable well beyond its peers in the event that gold prices begin to fall.

Throughout recent years, Barrick has been focused on streamlining and optimizing its operations. It was involved in a lot of merger and acquisition transactions throughout 2019.

Barrick Gold is also listed on the New York Stock Exchange for investors looking to purchase it with US dollars. It trades on the NYSE under the GOLD ticker.

The company is globally diversified with its operations, being involved with gold or copper mining across several continents. It has and will likely continue to pay a fantastic dividend yield to investors.

Barrick has a lower sustainability score than its peer group average. Despite this, Barrick has been releasing a yearly sustainability report since 2008.

As a low-cost gold producer trading at a reasonable valuation, Barrick Gold Corporation is an excellent choice to consider.

2. B2Gold Corporation

B2Gold Stock
  • Ticker: BTO.TO
  • Forward Dividend Yield: 5.05%
  • Dividend Payout Ratio: 44.44%
  • Dividend Yield (12-Month Trailing): 3.45%
  • Upcoming Dividend Date: Sep 29, 2022
  • Market Cap: $5.01 Billion
  • Forward P/E Ratio: 9.94
  • Average Analyst Rating: 1.8 - Buy

B2Gold is a medium-sized Canadian gold producer with much more concentrated operations. Currently, the company has operations in Mali, the Philippines, and Namibia, with future expansions planned into Colombia and Burkina Faso.

The company aims to grow through gold exploration and aggressive acquisitions. It has a relatively low all-in sustainable cost of production when compared to peers.

B2Gold Corporation is also listed on the NYSE under the ticker BTG, where investors can purchase it using US dollars.

B2Gold pays a great dividend to investors and trades at attractive valuation multiples relative to most peers.

The company has sustainability as a focus of its operations, releasing regular mining and other ESG reports.

Given that its operations are so heavily concentrated in a few countries, it is important to keep an eye on local geopolitical events as an investor.

B2Gold is a great choice to consider as a mid-sized Canadian gold company trading at a more inexpensive valuation.

3. Yamana Gold Inc.

Yamana Logo
  • Ticker: YRI.TO
  • Forward Dividend Yield: 2.48%
  • Dividend Payout Ratio: 42.86%
  • Dividend Yield (12-Month Trailing): 1.78%
  • Upcoming Dividend Date: Oct 14, 2022
  • Market Cap: $6.43 Billion
  • Forward P/E Ratio: 21.58
  • Average Analyst Rating: 2.0 - Buy

Yamana is another medium-sized Canadian gold producer with operations across four countries. Currently, the company has mines in Canada, Argentina, Brazil, and Chile.

Outside of gold, Yamana also mines silver and copper. It has an average all-in cost of production when it comes to gold mining, slightly higher than some of its peers.

Yamana is also listed on the New York Stock Exchange and the London Stock Exchange under the ticker AUY.

The company pays a relatively lower dividend yield than most of its peers. It trades at a relatively higher valuation than most peers based on its forward P/E ratio.

Yamana Gold has been releasing a yearly sustainability report since 2007.

The relatively high valuation and lower relative dividend yield reflect that the company is investing its profits back into the business and has several future initiatives that it is working on for investors.

If you have a long investment time horizon and can accept a lower dividend yield, Yamana is a great gold stock to consider.

4. Franco-Nevada Corporation

Franco-Nevada
  • Ticker: FNV.TO
  • Forward Dividend Yield: 1.03%
  • Dividend Payout Ratio: 31.08%
  • Dividend Yield (12-Month Trailing): 0.73%
  • Upcoming Dividend Date: Sep 29, 2022
  • Market Cap: $32.20 Billion
  • Forward P/E Ratio: 33.56
  • Average Analyst Rating: 2.4 - Buy

Franco-Nevada is a large Canadian gold company that does not focus on actually mining gold or other metals. The company’s business model revolves around royalties and streaming in both the metal (including gold) and oil & gas space.

The company pays an upfront cash amount for a portion of future metal or resource production (usually obtained at a discount). This helps mining and oil & gas companies with their upfront costs when starting or expanding operations.

These projects are mainly located across the US, Canada, Peru, and Chile.

Franco-Nevada is also listed on the New York Stock Exchange and trades under the ticker FNV.

The company pays a very low dividend yield and trades at a high relative P/E multiple, characterizing it as a growth stock (unlike most gold stocks).

If you can accept a very low dividend yield and have a very long-term investment time horizon for future projects to actualize, Franco-Nevada is a great gold stock to consider for your portfolio.

5. Kinross Gold Corporation

Kinross Logo
  • Ticker: K.TO
  • Forward Dividend Yield: 3.52%
  • Dividend Payout Ratio: 85.71%
  • Dividend Yield (12-Month Trailing): 2.21%
  • Upcoming Dividend Date: Sep 01, 2022
  • Market Cap: $6.94 Billion
  • Forward P/E Ratio: 10.27
  • Average Analyst Rating: 2.1 - Buy

Kinross Gold is a mature Canadian gold mining company with operations in several countries across the world. These include Canada, the US, Brazil, Mauritania, and Chile.

The location of the company’s operations makes Kinross a relatively higher risk stock than some of its peers from a geopolitical risk perspective.

Kinross trades on the New York Stock Exchange as well under the ticker KGC for investors looking to purchase it in US dollars.

The company pays a good dividend yield and trades at inexpensive multiples relative to peers. Its current price-to-book ratio is less than 1, indicating that its market cap is worth less than the book value of the company’s equity.

The lower valuations likely reflect the additional risks that are present in Kinross’ current operations.

If you are looking for a gold stock with a good dividend that is trading at relatively lower valuations, Kinross Gold is a great stock to look at.

6. Agnico Eagle Mines Limited

agnico logo
  • Ticker: AEM.TO
  • Forward Dividend Yield: 3.52%
  • Dividend Payout Ratio: 86.21%
  • Dividend Yield (12-Month Trailing): 2.44%
  • Upcoming Dividend Date: Sep 15, 2022
  • Market Cap: $27.57 Billion
  • Forward P/E Ratio: 15.08
  • Average Analyst Rating: 2.0 - Buy

Agnico is another senior Canadian gold mining company with operations in Australia, Canada, Finland, and Mexico. The company also has development projects in the US and Colombia.

Although Agnico places a large emphasis on ESG metrics (and is likely above average among gold peers), the company’s ESG score is fairly average.

The company was founded in 1957 and has paid a cash dividend every year since 1983. Agnico has a fairly average all-in sustaining cost per gold ounce.

The company also trades on the New York Stock Exchange under the ticker AEM for investors looking to buy shares in US dollars.

Agnico trades at a relatively higher valuation than its peers and pays a good dividend yield to investors. It is a great stock to consider if you a looking for a large, mature gold company with a good dividend yield.

7. Alamos Gold Inc.

  • Ticker: AGI.TO
  • Forward Dividend Yield: 1.36%
  • Dividend Payout Ratio: 57.69%
  • Dividend Yield (12-Month Trailing): 0.92%
  • Upcoming Dividend Date: Sep 29, 2022
  • Market Cap: $4.25 Billion
  • Forward P/E Ratio: 16.92
  • Average Analyst Rating: 2.1 - Buy

Alamos Gold is a mid-sized Canadian gold company headquartered in Toronto. The company operates four mines across Canada and Mexico.  Alamos has a few projects in development across Turkey, Mexico, and Canada.

The company has an above-average all-in sustainable cost of production of gold when compared to peers. Management has plans to reduce the AISC going forward to a more competitive level.

Alamos has a very strong balance sheet with the capacity to take on future debt if needed to expand aggressively.

Alamos Gold is also listed on the New York Stock Exchange and trades under the ticker AGI.

The company pays a relatively lower dividend yield and trades at a higher relative forward P/E ratio.

Alamos is a great company to consider if you are not too income focused and want to invest in a gold company with a solid balance sheet.

8. Osisko Gold Royalties

Osisko Logo
  • Ticker: OR.TO
  • Forward Dividend Yield: 1.72%
  • Dividend Payout Ratio: N/A
  • Dividend Yield (12-Month Trailing): 1.51%
  • Upcoming Dividend Date: Oct 14, 2022
  • Market Cap: $2.67 Billion
  • Forward P/E Ratio: 30.15
  • Average Analyst Rating: 1.9 - Buy

Osisko is another Canadian royalty and streaming company (similar to Franco-Nevada) headquartered in Montreal. The company is currently involved in approximately 135 royalties and streams, mainly across North America and Chile.

Osisko’s business model has long-term growth potential by focusing on earlier-stage mining projects, which do affect profitability in the short term.

The company is also listed on the New York Stock Exchange and trades under the ticker OR.

The company pays a relatively lower dividend yield and trades at a higher relative forward P/E ratio.

If you are looking for a gold streaming and royalty company that is a bit smaller than Franco-Nevada, Osisko is a great option to consider.

9. Centerra Gold Inc

Centerra logo
  • Ticker: CG.TO
  • Forward Dividend Yield: 4.84%
  • Dividend Payout Ratio: 17.19%
  • Dividend Yield (12-Month Trailing): 3.16%
  • Upcoming Dividend Date: Sep 08, 2022
  • Market Cap: $1.47 Billion
  • Forward P/E Ratio: 8.23
  • Average Analyst Rating: 2.7 - Hold

Kinross Gold is a relatively smaller Canadian gold mining company with two operating mines in total (one in Canada and one in Turkey). The company is looking to expand operations within Canada as well as in the US.

Centerra is different from the other gold companies on our list in terms of size and relative valuation. It trades at very cheap multiples (in terms of price-to-earnings and price-to-book) and falls below the traditional $2 billion market capitalization requirement for mid-cap stocks.

The great dividend yield, coupled with its low valuation, makes Centerra an attractive investment for value investors.

Centerra also trades on the New York Stock Exchange under the ticker CGAU, for investors looking to buy it in US dollars.

Value investors should definitely take a look at Centerra as a potential addition to a gold sleeve within a portfolio.

Should you Invest in Gold Stocks?

Gold stocks (or other gold-related investments) make sense in most portfolios as a diversifying sleeve. Whether or not to invest in gold stocks depend on you as an investor as well as the current and future market environment.

Below are some circumstances in which you would consider investing in Gold.

1. Increasing Portfolio Diversification

If your portfolio does not currently contain gold or other precious metals, adding gold stocks will likely increase its diversification. This is especially true because gold tends to have a low correlation with most traditional stocks and bonds.

2. Protecting Purchasing Power During Inflationary Times

If the current market environment is facing a high rate of inflation, gold can act as a good store of value. Gold has a finite supply and can’t be as easily manipulated by central banks around the world as fiat currencies.

If inflation is already high, gold prices may have already risen. It’s best to invest in gold if inflation is on the horizon but has not yet arrived.

3. Boosting Portfolio Yield

Gold stocks, especially more mature gold miners, tend to pay a great dividend yield to investors. This is an added benefit of investing in gold stocks versus buying physical gold outright.

If the yield of a gold stock is higher than your portfolio’s average yield, adding it should increase your income overall.

How to Pick Gold Stocks

Gold stocks should almost always be a small portion of your total portfolio. Gold miners are closely tied to the price of physical gold and tend to be much more volatile over time.

Picking a gold stock depends on the criteria that you have set out for your portfolio. Gold stocks vary in attributes, which means you will have to decide between:

  • Small, mid, or large capitalization
  • Value, core, or growth
  • Gold mining companies or gold royalty and streaming companies
  • High or low dividend-paying companies
  • Geographically concentrated or diversified in terms of company operations

Each characteristic can be beneficial under certain circumstances.

How To Buy Fertilizer Stocks In Canada

The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:

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To learn more, check out my full breakdown of the best trading platforms in Canada here.

Conclusion

Best Gold Stocks in Canada

A lot of the world’s best gold companies are actually located here in Canada.

Determining which gold stocks to invest in or pass on depends mainly on what features you are looking for in an investment. A small-cap gold miner will be a lot different from a large-cap gold royalty company.

Aside from gold stocks, you can also add exposure to the precious metal through some of the best Gold ETFs in Canada.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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