4 Top Precious Metals Stocks to Buy on the TSX Today

Precious metals stocks are safe havens but one small-cap and three large-cap mining stocks are the top buys today.

| More on:
Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)

Image source: Getty Images

Precious metals like gold, silver, and platinum have high economic value, and during market crises or economic uncertainties, investors view them as hedges or safe havens, especially gold. Regular investors can’t easily own physical precious metals or the yellow metal, but they have alternatives to gain exposure to them.

The TSX has sound choices today, including three large-cap stocks and a high-flying small-cap mining stock.

Screaming buy

Dundee Precious Metals (TSX:DPM) is a screaming buy. The small-cap stock trades at $9.70 and outperforms its larger industry peers. Current investors enjoy a 51.7% year-to-date gain in addition to the 2.25% dividend yield. This $1.8 billion firm is Canadian, but the mining operations are outside the country.

The precious metals properties are in Bulgaria and Namibia, with exploration activities in Serbia and Bulgaria, too. Dundee’s global portfolio boasts a high-margin production base and attractive growth projects or opportunities. Because of its robust free cash flow, the quarterly dividend has doubled since payouts started in Q1 2020.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Dundee Precious Metals made the list!

Steady performer

Wheaton Precious Metal (TSX:WPM) is a steady performer despite strong market headwinds. At $61 per share, the stock is outperforming the broader market year to date, up 16.5% versus 1.2% in the year-ago period. If you invest today, the dividend yield is a modest 1.34%.

Income-wise, this $27.6 billion multinational precious metals streaming company delivers. The average net income in the last three years is nearly US$644 million. Market analysts are also bullish, given their 12-month average price target of $75.60 (+23.7%).

The diversified portfolio of high-quality assets comprises 19 operating mines and 14 development projects. Besides operating in countries (Canada, Sweden, and Portugal) with low political risk, Wheaton believes it has a solid foundation for long-term sustainability. The highly diverse asset base and exploration upside assure sustainable dividends.

Industry leaders

For precious metals stock investors looking for stability in the current challenging economic times, Barrick Gold (TSX:ABX) and Agnico Eagle Mines (TSX:AEM) are no-brainer buys. The industry leaders underperform thus far in 2023 but offer peace of mind.

Barrick Gold has a global reach, with operational mines in Argentina, Canada, Cote d’Ivoire, the Democratic Republic of the Congo, the Dominican Republic, Mali, Tanzania, and the United States. The Reko Diq project in Pakistan should begin production in 2028.

One of the crown jewels of this $39.2 billion gold and copper producer is the Pueblo Viejo Mine in the Dominican Republic. The thirteenth largest mine in the world produces more than ounces of gold annually. Only a few mines have that capacity. At $22.33 per share (-2% year to date), you can partake in the 2.44% dividend.

Agnico Eagle Mines is a compelling investment prospect for its robust growth strategy and increasing gold production in lower-risk jurisdictions. The $33.4 billion multinational gold mining company operates in Canada, Australia, Finland, and Mexico. Its exploration and development activities extend to the United States.

At $67.33 per share (-1.89% dividend yield), this top-tier gold stock pays an attractive 3.18% dividend.

Top pick

For people wanting exposure to mining stocks, Dundee Precious Metals is an excellent choice. Its market-beating returns and quarterly dividends make it a top pick today. However, you’ll also get your money’s worth with the large-cap counterparts.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Metals and Mining Stocks

Arrowings ascending on a chalkboard
Metals and Mining Stocks

If This Fast-Rising Stock Isn’t Yet on Your Radar, it Should Be

This stock is up 44% in the last year and climbing, and yet there is even more to come with…

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Is Agnico Eagle Mines a Buy in July 2024?

Although quite a few gold stocks are worth looking into for their dividends, the less-than-modest capital-appreciation potential can be a…

Read more »

Gold bars
Metals and Mining Stocks

The Best Gold Stock to Invest $1,000 in Right Now

Want to invest in precious metals? Here's the best gold stock to buy right now, and it isn't a traditional…

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

This mining stock has a huge future ahead of it, especially as copper surges in demand around the world. And…

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

How to Turn Your TFSA Into a Gold (or Copper) Mine Starting With $10,000  

These two top stocks can turn any TFSA into a gold mine -- or a copper mine, if you really…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

1 Canadian Mining Stock to Buy and Hold Forever

Canadian investors can consider gaining exposure to quality mining stocks such as Wheaton Precious Metals in June 2024.

Read more »

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »