Freehold Royalties
FRU.TO (TSX)
Freehold Royalties stands out as a solid investment option, boasting a manageable net debt-to-FFO ratio of 1.1x and a strong dividend yield of over 7%. Investors can expect consistent monthly dividends, currently set at $0.09, which translates to a reliable annual income of $1.08 per share. With a one-year return of 14.49% and a remarkable five-year return of 151.99%, this energy royalty company is well-suited for those seeking exposure to diversified properties linked to commodity prices.
Pros:
- High dividend yield
- Diversified properties tied to commodity prices
Cons:
- Negative YTD return
- Dependence on oil and gas market fluctuations
Freehold Royalties (FRU.TO) may be a suitable investment for income-focused investors seeking exposure to the energy sector, given its strong dividend yield and impressive long-term returns. With a manageable debt profile and a history of consistent monthly payouts, it appeals to those looking for both dividend income and potential capital appreciation in a diversified royalty structure.