Franco-Nevada Corp. (FNV.TO)

Very diversified precious metals royalty stream company. Long-term cash flow stream. Very de-risked business, because they don’t produce the gold themselves, and so they trade at a much higher multiple. Right now, gold space is really out of favour. Fine to hold at these levels. Trim at $110.

(Past Top Pick, June 22, 2018, Down 1%) It's solid and a great long-term investment in precious as well as base metals. They've bought into energy as well, offering a diversified income stream of resources.

(Past Top Pick, April 3, 2017, Up 7%) He recommends this as for a long-term hold, because it's enjoyed strong, steady growth. This is holding its value as gold has pulled back and the US dollar has risen. A great payer and dividend structure. It's not just into gold, but also copper--a diversified streamer.

A safe stock in a volatile sector, good for seniors. (FNV is also one of his past top picks on this day--see his comments there.) (Analysts' price target: $109.25)

The gold sector has failed to get going. It's a sector story, not the stock itself. FNV is a way to play precious metals without too much risk. Hold for now. This sector should do okay for the rest of the year. He has a small position.

The largest gold royalty company AROUND. It's a safe way to play gold, but insulates investors from capital cost creeps from the mining space. He likes this company. It reported strong results last week. They're expanded their oil/gas portfolio and performing very well.

What triggered the last-minute upside for the stock yesterday? It was reporting earnings so maybe there was some leak or speculation. Or maybe was just a strong buyer and they needed to bid up to get that many shares. Just another example of how much trading is happening in the last part of the trading day.

A steady grower. FNV is not just gold, even have a bit of oil. Likes the dividend structure where dividend increases as cash flow rises. (Analysts' price target $109.80)

They were a little bit light in revenue. There is no issue that they can grow as companies build out their mines. It can be sleepy and boring but he likes that.

If you are bullish on a late cycle it is probably okay to buy on this on a pullback. He does not like late cycle inflationary plays. You could buy it for a bounce over the next couple of months, however. It will not do well if we go into a recession.

Management and founders pioneered the concept of resource royalties back in the mid-1980s. The attraction is the commodity price exposure, but insulating the shareholder from operating and capital costs of overruns that the mining industry is continually plagued with. This has outperformed the TSX Gold group in 8 of the 10 years since the IPO. Dividend yield of 1.1%. (Analysts' price target is $111.15.)

He would look at this as one of the better producers. Right around its current level, it brought in some buyers. It’s down a little today, and there might be fundamentals that brought it down. Chart shows a nice little trend. Some indicators are turning down, but that doesn't mean the indicators haven't already reflected that downturn. Gold is expected to be a reasonably good asset class for 2018. $97 is a good place to put your money for 2018.

Sold this a little over a year ago in the mid-$80 because the valuation was too high. His mandate is to double his money in 10 years, and this one starts running into the law of round numbers which is his problem with this company.

What is the likelihood of an increase in dividends? He thinks this company has the highest yield in the gold sector. A great company. It is a streaming company, not only for gold, but also oil. They’ve spent a lot of money recently on oil royalties. Dividend yield of 1.2%.

This does well in both Bull and Bear markets in the commodity. We are in a sort of undecided “not a lot of love for gold” right now, but gold certainly has a lot of excitement around it. Another thing they’ve done is to move into the royalty streaming business of oil and gas and other precious metals. Dividend yield of 1.2%. (Analysts’ price target is $112.30.)