Why Agnico Eagle Deserves a Spot in a Defensive Dividend Portfolio

Agnico Eagle Mines Limited (NYSE:AEM) is included among the 11 Best Canadian Dividend Stocks to Buy Now.

Why Agnico Eagle Deserves a Spot in a Defensive Dividend Portfolio

A closeup image of a miner holding a pile of gold nuggets, a representation of the company’s royalty.

The company is a leading gold producer with mining operations in Canada, Finland, Australia, and Mexico. It is recognized for its stable operations, long-life mining assets, and solid financial position. Although gold prices can fluctuate, Agnico has a track record of maintaining resilient performance over the long term.

Agnico Eagle Mines Limited (NYSE:AEM) has shown remarkable growth in its gold production over the years. Back in 2008, the company operated only a single mine, LaRonde. Since then, it has significantly expanded its presence to 11 mines spread across four countries. This growth has been fueled by the development of new mining projects and well-planned acquisitions, particularly in regions considered to be lower risk.

Agnico Eagle Mines Limited (NYSE:AEM) reported a solid cash position in the first quarter of 2025. The company’s operating cash flow came in at $1.2 billion, and its free cash flow amounted to $594 million. Currently, it offers a quarterly dividend of $0.40 per share for a dividend yield of 1.34%, as of July 15. The company has paid uninterrupted dividends to shareholders since 1983.

While we acknowledge the potential of AEM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AEM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.