The first quarter of 2025 saw a hot gold market contrasted with significant volatility in the equity markets. Portfolios that held a number of high-multiple tech stocks have probably lost at least 10 per cent or more year-to-date.
Considering that tariff concerns have been priced into stock prices, now is certainly not the time to sell stocks to stop losses. Instead, it’s time to decisively pocket some Canadian stocks that have obvious upside potential and also offer dividend income.
The price of gold hit another all-time high this week above $3,100 per ounce. With geopolitical uncertainty, tariff risk and growing central bank uncertainties, gold’s record rally may still have upside, especially if central banks continue to ramp up their gold assets.
In the coming weeks or months, Trump’s tariff policies could be clafiried. If the new Canadian government makes further progress in talks with Trump, perhaps the broader TSX market will have a chance to move higher along with gold. If things deteriorate, buying and holding gold stocks now makes a lot of sense.
For Canadian gold mining stocks to buy in the second quarter, Agnico Eagle Mines (TSX:AEM) and Barrick Gold (TSX:ABX) might be the best bets.
Firstly, both companies are well-run, large gold miners, with management exercising strict financial discipline, and efficient operations coupled with a rising gold price environment guaranteeing cash flow and generous dividends. As the gold price continues to move higher, both companies are well positioned to raise their dividends at an above-average rate while continuing to generate significant capital gains.
Barrick, the world’s second-largest gold producer, with production growth of 8 per cent in 2024 through the acquisition of African gold assets, has an industry-leading cash flow covered dividend yield.
The two miners currently pay dividend yields of 1.5% and 2.1%, respectively. Investors are well placed to nibble these two stocks after pullbacks triggered by broader market declines.
