Agnico (AEM) and FNV: 2 TSX gold stocks to hedge against inflation

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Agnico (AEM) and FNV: 2 TSX gold stocks to hedge against inflation

Agnico (AEM) and FNV: 2 TSX gold stocks to hedge against inflation
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Highlights

  • Investors worldwide seem to be flocking towards commodity-based equities like gold and copper amid the ongoing geopolitical tensions.
  • Franco-Nevada said that its annual net profit was US$ 733.7 million in 2021, up 125 per cent up from 2020.
  • Agnico holds a five-year dividend growth rate of 33.48 per cent..

Investors worldwide seem to be flocking towards commodity-based equities like gold and copper amid the ongoing geopolitical tensions. While their rising prices could be one reason, traders could also be exploring these option to safeguard their portfolios against the ongoing supply shortage and its resultant inflationary pressure.

That said, let us talk about two TSX gold stocks.

Franco-Nevada Corporation (TSX: FNV)

Franco-Nevada saw its top line reach US$ 327.7 million in Q4 FY2021, up eight per cent year-over-year (YoY). Its net income, on the other hand, shot up by 25 per cent YoY in the latest quarter.

The gold company said that its annual net profit was US$ 733.7 million in 2021, up 125 per cent up from 2020.

Franco-Nevada (TSX: FNV) Q4 FY2021 results

Franco-Nevada is set to dole out US$ 0.32 apiece as a quarterly dividend on March 31.

FNV stock closed at C$ 197.38 per share on Tuesday, March 15, having climbed approximately 26 per cent in a year.

Also read: Talon (TSX: TLO) & CNC: Is it time to buy Canadian nickel stocks? 

Agnico Eagle Mines Limited (TSX: AEM)

Agnico Eagles posted a total revenue of US$ 949.10 million in Q4 FY2021 compared to US$ 928.45 million a year ago. Its net profit, however, declined to US$ 101.11 million in the latest quarter from US$ 205.22 million in Q4 2020.

Agnico holds a five-year dividend growth rate of 33.48 per cent. It currently pays a dividend of US$ 0.40 per share every quarter.

AEM stock galloped by about 20 per cent in the past one month.

Bottomline

Some Canadian gold miners, like Franco-Nevada and Agnico Eagle Mines, are known to actively pay dividends to their shareholders, which could be a factor to explore for income seekers.

However, price fluctuations of commodities in situations like a geopolitical crisis or a pandemic are likely to be volatile. Hence, investors exploring such market conditions should tread carefully.

Also read: Fire & Flower (FAF) & Canopy (WEED): 2 TSX cannabis stocks to watch

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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