Remember when Bombardier (TSX: BBD.B) was consistently named in the TSX 30 list. While the business jet maker’s performance has normalized, the new stock making the list for the second year in a row is Lundin Gold (TSX: LUG). TSX30 filters the top 30 performing stocks on the TSX based on the dividend-adjusted share price appreciation over the last three years ending June 30. The dividend-adjusted return includes both dividends and share price appreciation to arrive at total return, making dividend and growth stocks comparable.
Source: Getty Images
Why do TSX30 stocks matter?
Investors should look at the TSX 30 to determine which stocks or sectors are outperforming the market. Growth cycles last three years. Identifying outperformers in the first year can help you shortlist stocks for fundamental research. You can identify patterns and growth drivers of such stocks.
For instance, Bombardier made the TSX30 list for three consecutive years: 2023, 2024, and 2025. Its growth driver was its turnaround story, which took three years to unfold. Now, the stock has normalized growth.
Had you invested in Bombardier in September 2023 when it first appeared on the TSX 30 list, you could have enjoyed a 560-600% rally by now. If you invested in September 2024 as well, you could have enjoyed a 280% share price appreciation. For those who invested in September 2025, the stock gave a 95% return.
The new trend in the TSX30 list of 2025 and 2026 is gold stocks.
Lundin Gold: A repeat TSX30 winner
Lundin Gold appeared on the TSX30 list for the first time in 2025, ranking second with a dividend-adjusted share price appreciation of 775% for the three years ended June 30, 2025. In the second appearance, it ranked 23rd, with adjusted share price appreciation of 484% for the three years ended June 30, 2026.
Driving Lundin Gold’s stock price was a significant surge in gold prices as U.S. tariffs encouraged global central banks to increase gold reserves. Gold was among Canada’s top exports after oil and gas. In the three years ended June 30, 2025, gold price surged from US$2,200 to over US$5,000.
Lundin Gold used this upcycle to repay all its debt and reduce its all-in sustaining cost (AISC) to US$918 in the first half of 2025. With the average realized gold price increasing by 42% year over year to US$3,231 per ounce in the first half of 2025, its profits surged. The company stuck to its dividend policy of paying a fixed quarterly dividend of $0.3 per share and using 50% of the normalized free cash flow to pay variable dividends. It paid a $1.16 dividend per share in the first half of 2025.
The upcycle continued in 2026 as Lundin Gold paid a $5.45 dividend per share in the first half of 2026. This was because its average realized gold price increased to US$4,660 per ounce. With the U.S.-Iran war keeping oil prices elevated, the gold price is likely to remain above US$4,000 per ounce, hinting at a full year of strong free cash flows.
Is Lundin Gold a buy at $90?
Although gold prices have remained high through 2026, share price appreciation has normalized for Lundin Gold, with a 20% rally in the 12 months ended June 30, 2026. Its 260% rally in the 12 months ended June 30, 2025, will continue to skew the three-year return used by the TSX30.
The market has already priced in US$4,000+ gold price as Lundin Gold stock trades at a 16x forward price-to-earnings ratio, closer to the March 2025 ratio of 15x. For its share price to surge above 50% to around $140, either gold prices have to surge significantly and reach closer to $5,000, or Lundin Gold has to increase production. The latter is unlikely, as the miner is on track to achieve its 2026 gold production guidance of $475,000-$525,000 ounces, a 4.5% difference from the 2025 output of $498,315 ounces. As for the gold price, it may fall if the Fed hikes interest rates.
The only reason to buy Lundin Gold at $90 is for its high variable dividends and a 20-30% share price appreciation if the Fed keeps interest rates unchanged. The high dividends are likely to stay for some time.
