Is Agnico Eagle Mines Limited (AEM) the Best Canadian Dividend Stock to Buy For Income Investors?
Saturday, Jan 11, 2025 9:56 am ET
1min read Agnico Eagle Mines Limited (AEM) is a leading gold mining company that has consistently provided a stable and growing dividend to its shareholders. With an annual dividend of $1.60 per share and a yield of 1.90%, AEM offers an attractive option for income-oriented investors. However, is it the best Canadian dividend stock to buy? Let's analyze AEM's dividend history, growth, and payout compared to other popular Canadian dividend stocks.
| Stock | Dividend Yield (TTM) | Average Dividend Yield (5 Years) | Annual Dividend (Last Year) |
|---|---|---|---|
| Agnico Eagle Mines Limited (AEM) | 1.90% | 2.27% | $1.60 |
| Royal Bank of Canada (RY.TO) | 4.10% | 3.80% | $4.12 |
| Toronto-Dominion Bank (TD.TO) | 3.80% | 3.50% | $3.84 |
| Bank of Nova Scotia (BNS.TO) | 4.20% | 3.90% | $3.76 |
| Canadian National Railway (CNR.TO) | 1.80% | 1.70% | $2.16 |
| BCE Inc. (BCE.TO) | 5.50% | 5.20% | $3.92 |
As shown in the table above, AEM's dividend yield is lower than some other popular Canadian dividend stocks, such as the banks (RY.TO, TD.TO, BNS.TO) and BCE Inc. (BCE.TO). However, AEM's dividend yield is higher than that of Canadian National Railway (CNR.TO), another dividend-focused stock.
When considering dividend growth, AEM has increased its annual dividend every year since 1983, providing a consistent and growing income stream for shareholders. This history of dividend growth is an attractive feature for income-oriented investors.
In conclusion, while AEM's dividend yield may be lower than some other popular Canadian dividend stocks, its history of consistent dividend growth and its status as a leading gold mining company make it an attractive option for investors seeking a stable and growing income stream. However, investors should also consider other factors, such as the company's financial health, growth prospects, and risk profile, when making investment decisions.
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