We recently published a list of Top 10 Gold Stocks with Dividends. In this article, we are going to take a look at where Agnico Eagle Mines Limited (NYSE:AEM) stands against other top gold stocks with dividends.

Gold’s performance as an asset in 2024 has been immaculate, despite increasing global constraints. The price for it crossed the $2,900 per ounce mark, driven by strong purchasing by the central bank, increased investor demand, and its role as a hedge against economic uncertainties. Gold’s value as a safe haven increased due to inflationary concerns and increasing geopolitical instabilities, gaining interest from retail and institutional investors.

Total gold demand, including over-the-counter (OTC) investments, has reached a record high of 4,974 metric tons in 2024, as per the World Gold Council. This increase was majorly driven by central banks, which contributed over 1,000 metric tons of gold to the demand for the third consecutive year. Particularly central banks in emerging markets, such as China and India, looked to increase their gold reserves to diversify away from the U.S. dollar. Gold provided an astonishing return of 43.83% for the previous year, significantly above the broader market’s 20.89% gain for the same period.

The investment market for gold has seen major changes, where gold exchange-traded funds (ETFs) reported no major outflows for the first time since 2020, which marks a reversal from previous years of heavy liquidations. Moreover, physical demand for gold has been strong, with purchasing for bar and coins remaining stable at 1,186 metric tons. Technology-driven gold usage has also seen a surge of 7%, driven by the expansion of artificial intelligence and semiconductor industries. These industries rely on gold components for high-performance electronics.

Despite the overall strong performance of the market, gold jewelry demand saw a decrease of 11% in 2024 due to high prices, making it less affordable for consumers. Nevertheless, total spending on gold jewelry in monetary terms increased by 9%, highlighting the overall impact of increasing gold prices. The contrasting situation with lower demand for gold jewelry and high demand for investment highlights the changing role of gold in the global economy.

Market experts and top financial institutions hold a positive outlook on gold’s trajectory for 2025. Goldman Sachs has recently revised its forecast for the gold price to $3,100 per ounce, citing the enhancing accumulation by the central bank and increasing investor interest. Likewise, analysts from J.P. Morgan have projected that gold prices could increase to $3,000 per ounce if macroeconomic instability continues.

Looking ahead, the gold market is being influenced by global monetary policies as well. As per J.P Morgan, major economies like the U.S. and Europe looking to cut down interest rates and lower return on traditional investments will likely drive up the demand for gold. Historically, the opportunity cost of holding gold reduces as traditional investments produce lower yields, increasing prices.

Conclusively, under these circumstances, investment in gold stocks has become a lucrative opportunity for investors looking to gain from the metal’s performance while generating hefty returns through dividends. Gold mining companies with strong financial performance, continual dividends, and major hedge fund backing provide a golden opportunity to enter the sector.

Methodology

To come up with our list of the Best Gold Dividend Stocks to Buy Now, we first recognized companies in the gold sector, offering dividend payments, along with posing strong market capitalizations. We then shortlisted stocks by looking into hedge fund interest, as stocks with strong hedge fund backing often point to stable financials and growth potential.

To rank these stocks, we used Insider Monkey’s Hedge Fund Database as of Q4 2024. The companies were sorted on the basis of the number of hedge funds invested in them, ranking companies with the highest hedge fund interest in ascending order.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Agnico Eagle Mines Limited (NYSE:AEM)

Number of Hedge Funds Holders: 53

Agnico Eagle Mines Limited (NYSE:AEM), a gold mining company, is engaged in the expansion, production, and exploration of precious metals. It operates mines in Mexico, Australia, Canada, and Finland, with development and exploration projects across various regions.

Backed by record gold production and well-maintained cost management, Agnico Eagle Mines Limited (NYSE:AEM) achieved a strong performance in Q4 and full-year 2024. Total cash costs stood at $903 per ounce, and the annual gold production achieved 3.49 million ounces, surpassing guidance. With a free cash flow of $2.1 billion for the full year and adjusted earnings of $632 million, the company reported record revenue of $2.2 billion in Q4. Agnico reached substantial margin expansion and elevated gold prices with strong operational efficiency and cost controls.

Furthermore, by bringing total proven and probable gold reserves to 54.3 million ounces, the company solidifies its asset base with a 0.9% increase in mineral reserves. Main contributors included reserve growth at LaRonde, Meliadine, Amaruq, and Macassa, alongside an initial reserve declaration at Wasamac.

Moreover, Odyssey and Detour Lake witnessed major reserve development, with continuous drilling to further assess their long-term potential. Inferred mineral resources jumped nearly 10% while lowering costs by 8%, as the exploration program generated strong results.

In addition, Agnico Eagle Mines Limited (NYSE:AEM) continues to develop significant growth projects. Hope Bay project witnessed a major rise in indicated and inferred resources following successful drilling in Patch 7, while the Upper Beaver project now possesses 2.77 million ounces of gold reserves.

By declaring a quarterly dividend while repurchasing $120 million in shares in 2024, the company reinforces its commitment to shareholder returns. The company returned $800 million to shareholders through dividends that year.

Consequently, the stock has jumped 32.46% year-to-date, demonstrating investor confidence in its growth strategy and robust execution. Agnico Eagle Mines Limited (NYSE:AEM) remains one of the Best Gold Stocks, with its high-quality asset portfolio and efficient capital allocation providing strong long-term growth potential.

Overall, AEM ranks 2nd on our list of other top gold stocks with dividends. While we acknowledge the potential of AEM, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.