If I had to choose just one gold stock to buy and hold for decades, Wheaton Precious Metals (TSX:WPM) would be at the top of my list. Not because it digs up gold from the ground, but because it does something smarter. It lets others do the heavy lifting while it takes a cut of the rewards. That business model – along with its strong financials, diversification, and solid track record – makes Wheaton a standout in the gold sector, especially if you’re looking for long-term performance with less operational risk.
A golden model
Unlike traditional gold miners that face rising costs, political challenges, and the unpredictability of extracting metals, Wheaton runs on a streaming model. It provides upfront capital to mining companies to help develop or expand their operations. In return, Wheaton gets the right to purchase a percentage of the mine’s future production, usually at a fixed, discounted price. That means it benefits when gold prices rise, without the costs or risks of actually mining.
This model has worked exceptionally well. In its most recent earnings release for the first quarter of 2025, Wheaton reported earnings per share (EPS) of US$0.55, beating expectations of US$0.50. Total revenue was US$470.4 million, a 58% increase year over year. That’s not just a good quarter. That’s a sign of what happens when you have long-term contracts in place and the price of precious metals is cooperating.
What further sets Wheaton apart is its broad and diverse portfolio. The company currently holds streaming agreements tied to 18 active operating mines and 28 development-stage projects. These are spread out geographically, including operations in Canada, the United States, Mexico, Brazil, and Chile. This level of diversification means that Wheaton isn’t overly dependent on any single mine, company, or country. If one mine runs into trouble, there are plenty of others still contributing to the bottom line.
Rock solid
From a financial perspective, Wheaton is rock solid. It has a market cap of around $53.4 billion, which places it comfortably in large-cap territory on the TSX. It posted a net profit margin of 42.5% and a return on equity of 8.3% according to its most recent filings. It’s profitable, it’s efficient, and it’s not carrying an outsized debt load like many mining peers.
It’s also shareholder-friendly. While you’re not buying Wheaton for the dividend alone, it does pay one, and it’s been steadily increasing. And because it’s structured as a royalty and streaming company, Wheaton generates predictable cash flows that help support those payouts even during periods when gold prices are choppy.
In short, if I were putting money into just one gold stock, Wheaton would be it. It combines exposure to rising gold prices with a lower-risk business model, strong financials, and long-term contracts that produce reliable revenue. It’s global, diversified, and smart in how it generates profits. And it’s well suited for those who want to hold through market cycles without worrying about day-to-day mine performance.
Bottom line
In a volatile world where inflation, interest rates, and currency fluctuations can swing markets, holding a gold stock like Wheaton in your portfolio adds both stability and upside. It’s not a get-rich-quick pick, but it’s the kind of gold investment that could quietly help you build wealth over time. And sometimes, that’s exactly the kind of stock worth holding forever.
