1 Stock I'd Buy Before Wheaton Precious Metals (WPM) In 2026

I believe Wheaton Precious Metals (WPM +0.30%) has an ideal business model for the precious metals industry. It holds a growing portfolio of streaming contracts tied to some of the world’s best mines. They enable it to buy these metals at low rates, allowing it to cash in on higher market prices.

However, as much as I like Wheaton Precious Metals, I prefer another precious metals stock even more: Franco-Nevada (FNV +0.63%). Here’s why I’d buy its stock before adding Wheaton Precious Metals to my portfolio.

All about the streams

Wheaton Precious Metals provides mining companies with capital to develop or expand mines via streaming contracts. Under the terms of these agreements, Wheaton pays a miner a fixed up-front fee in exchange for the right to buy a portion of the gold or silver produced from the mine at a fixed rate. For example, in November, the company acquired a gold stream on the Spring Valley project in Nevada. It will pay $670 million in cash upfront in installments to the mind’s developer. In exchange, it will purchase 8% of the gold at 20% of the spot price until the mine produces 300,000 ounces. Afterward, the company will purchase 6% of the gold for the life of the mine at 22% of the spot price.

The company currently has streams tied to 23 operating mines and another 25 in development or other projects. It expected these streams to produce 600,000 to 670,000 gold equivalent ounces (GEOs) in 2025 (59% gold, 39% silver, 1% cobalt, and 1% palladium). Production should grow to 870,000 GEOs by 2029 and to an average of 950,000 GEOs annually from 2030 to 2034. It can purchase gold and silver at an average cost of $473 and $5.75 an ounce, respectively, through 2029. The company’s streams produce significant cash flow, which Wheaton uses to invest in new ones and pay a sustainable and progressive dividend.

More ways to win

Franco-Nevada is a gold-focused royalty and streaming company. It has a much larger and more diversified portfolio. It currently has 434 assets — including 120 producing, 38 in advanced stages, and 376 exploration projects — across gold, silver, platinum group metals, other mining, oil, gas, and natural gas liquids. Most of its portfolio (418 assets) consists of royalty agreements, while 82% of its GEOs are precious metals. It recently paid nearly $1.1 billion in cash for a 7.5% gross margin royalty on the Cote Gold Mine, which should supply it with $67 million of annual revenue.

The royalty and streaming company expects its annual production to average between 495,000 and 525,000 GEOs through 2029, based on the current production of its assets. There are another 175,000 GEOs of potential growth from Cote, and if Cobre Panama restarts full production. Meanwhile, it has another 225,000 GEOs of longer-term incremental production potential.

Like Wheaton, Franco-Nevada uses the significant cash flow produced by its agreements to make new investments and pay a growing dividend (18 consecutive years of increases).

An even lower risk way to invest in precious metals

Wheaton Precious Metals’ streaming business model offers a lower-risk way to invest in the upside of gold and silver. However, I prefer Franco-Nevada’s more diversified royalty and streaming business, which is why I’d buy its stock before Wheaton’s.