Wheaton Precious Metals: Is This Gold Stock Still a Buy After Soaring 50% This Year?

The market has been a rollercoaster in 2025, but one stock has been a relentless winner: Wheaton Precious Metals (WPM). Up 50% year-to-date and outperforming the S&P/TSX by a mile, investors are asking: Is this precious metals powerhouse still worth buying after such a rally? Let’s dig into the data and decide.

The Rally That Keeps On Rallying

WPM isn’t just a winner—it’s a dominant one. Over the past year, the stock has surged 60.68%, trouncing the S&P/TSX’s meager 11.71% return. And it’s not a fluke: over five years, WPM has returned a staggering 159.75%, nearly tripling the index’s 68.47%.

But here’s the question: Can this momentum continue? Let’s look at the three pillars of WPM’s success—and whether they still hold up.

Pillar 1: Dividend Growth That’s Anything But Precious (Metal)

WPM’s dividend has been a cash machine for shareholders. In 2024, it paid out a record $0.62 per share annually, and in Q1 2025, it boosted its dividend by 6.5% to $0.165 per share. That’s not just a raise—it’s a signal of confidence in its streaming model, which locks in low-cost access to gold, silver, and cobalt.

The Dividend Reinvestment Plan (DRIP) also adds a kicker: shareholders can reinvest dividends at market price, compounding gains. With a 52.2 P/E ratio, investors are betting WPM can keep growing earnings to justify this valuation.

Pillar 2: The Streaming Model—Risk-Free Gold Mining?

WPM doesn’t dig mines; it buys streams—agreements to purchase metals at a fraction of the market price. This model insulates the company from the operational risks that plague traditional miners. As of Q1 2025, WPM has 18 operating mines and 28 development projects, including high-potential plays like Montage’s Koné and Allied Gold’s Kurmuk.

Management is targeting a 40% production increase by 2029, ramping up to 870,000 gold-equivalent ounces annually. With $818 million in cash and a $2 billion undrawn credit facility, WPM has the firepower to snap up new streams when opportunities arise.

Pillar 3: Analysts Are All In—But Is the Stock Overbought?

Analysts are bullish, with a Strong Buy consensus from 15 firms, including upgrades from Raymond James, UBS, and Scotiabank. The average 12-month price target is $84.74, implying modest upside from its current price of $84.01.

But here’s the catch: The highest price target of $129 is a 53% premium, while the lowest (at $59.96) warns of a 28% drop. The risks?

The Risks: Gold’s Rollercoaster and Project Delays

WPM’s fate is tied to gold prices, which analysts predict could hit $3,000/ounce in 2025 due to inflation and central bank demand. But if rates stay high or inflation cools, gold could slump.

Also, new projects like Blackwater and Goose mines could hit cost overruns or delays, squeezing margins. And let’s not forget: The mining sector overall is in the bottom 33% of industries by Zacks rankings.

Conclusion: Buy, But Keep an Eye on Gold

WPM is a buy at current levels—but only if you’re comfortable with the risks tied to its gold exposure. The dividend growth, streaming model, and analyst support make it a top pick for investors who believe in rising metals prices and WPM’s execution.

Here’s the math:
- Current yield: ~2% (not huge, but growing).
- EPS growth: Analysts project $2.40 for 2025, up from $1.94 in 2024.
- Industry dominance: WPM’s production growth and financial flexibility outclass peers.

Action Alert: If gold stays above $2,000/ounce and WPM’s new streams pan out, this stock could keep climbing. But if you’re skittish about volatility, wait for a dip below $70—a 10% pullback—to load up.

In a market where certainty is scarce, WPM’s streaming model and dividend machine make it a “buy and hold” gem—even after the rally.

Final Verdict: WPM is worth the exposure—but keep one hand on your sell button if gold tanks. The data says to buy, but the market’s mood could change faster than a cobalt stream.