1 Magnificent Canadian Dividend Stock Down 39% to Buy and Hold for Decades

Gold stocks rarely move quietly, and Agnico Eagle Mines (TSX:AEM) just proved that point. Shares of the Toronto-based gold miner have tumbled from their March 2026 peak of roughly $349 to around $220 at the time of writing.

Down almost 40% from all-time highs, the Canadian mining stock is valued at a market cap of $77 billion. The ongoing pullback tied to falling gold prices has raised the forward yield to 1%. For a company that produced record profit just a quarter ago, the stock price weakness offers you an opportunity to buy the dip.

Let me explain why I think this pullback is worth a closer look, and why I believe Agnico Eagle remains one of the better dividend stocks for Canadians to hold for the long haul.

Why Agnico Eagle stock is down in 2026

Earlier this month, Agnico Eagle reported a mass rock movement along the north wall of the Barnat open pit at its Canadian Malartic complex in Quebec. The mining at the pit was paused, forcing Agnico to trim its production guidance through 2028.

The mining pause coincided with a wider gold market sell-off. Gold prices are down over 30% from all-time highs as investors are concerned that interest rates might rise in response to higher inflation data in recent months. Historically, gold prices and interest rates have had an inverse relationship.

The Canadian mining stock has returned 230% to shareholders after adjusting for dividends over the last three years. Based on consensus price targets, it still trades at a 52% discount as of July 2026.

The bull case for the Canadian dividend stock

Agnico Eagle is the second-largest gold producer by market value, targeting about 3.4 million ounces of gold this year. Roughly two-thirds of that production comes from five mines clustered in the Abitibi region of Quebec and Ontario, all within 300 kilometres of each other.

Chief Financial Officer Jamie Porter explained at a Bank of America mining conference in May that operating mines close together lets Agnico share equipment, technical staff, and suppliers across sites. He said this regional approach keeps the company’s costs US$300 to US$400 an ounce below the industry average.

In Q1 2026, the company produced about 830,000 ounces, ahead of its own budget, while realizing a record gold price of US$4,881 an ounce.

The Canadian dividend stock ended March with US$2.9 billion in net cash, following the repayment of US$1 billion of debt in 2025. Porter said he expects the cash position to approach US$5 billion by year-end, giving the gold miner ample room to fund growth and return cash to shareholders.

Agnico Eagle has paid a dividend every year since 1983, cutting it only once in that entire stretch. Management has been clear that the dividend is intended to hold up even in a much weaker gold price environment, while share buybacks serve as a flexible tool tied to profits and valuation.

Notably, Agnico has five internal growth projects, including expansions at Detour Lake and Canadian Malartic, plus new construction at Upper Beaver and Hope Bay, that together could add 1.5 million ounces of annual production over the next several years.

The Foolish takeaway

I think the market is punishing Agnico Eagle for a manageable operational hiccup and a broader gold sell-off.

A company generating record cash flow, sitting on a near-record balance sheet, and holding a more than 40-year dividend history does not usually trade 39% below its highs without the gap eventually closing.

Gold prices are expected to remain volatile in the near-term, especially if inflation moves higher.  But for investors building a long-term, dividend-focused portfolio, I would treat this pullback as a chance to start or add to a position in Agnico Eagle stock.

The post 1 Magnificent Canadian Dividend Stock Down 39% to Buy and Hold for Decades appeared first on The Motley Fool Canada.

Should you invest $1,000 in Agnico Eagle Mines right now?

Before you buy stock in Agnico Eagle Mines, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Agnico Eagle Mines wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $17,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 97%* – a market-crushing outperformance compared to 88%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of July 6th, 2026

More reading

• 3 Undervalued Stocks to Buy Before the Crowd Catches On

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.