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Nervous markets await NvidiaThis summary was created by AI, based on 29 opinions in the last 12 months.
Freehold Royalties Ltd (FRU-T) is viewed as a low-risk investment in the energy sector, primarily for its attractive dividend yield ranging from approximately 7.5% to 9.5%. Analysts appreciate its royalty structure, which eliminates exploration risks and offers high margins with low liabilities. While the company's asset quality is not considered outstanding, it trades at a significant discount compared to peers like PrairieSky, raising interest among yield-focused investors. Recent expansions into the U.S. oil market are seen as a positive move, although the company faces cyclical risks tied to commodity price fluctuations. Overall, experts believe that despite some recent volatility and revenue misses, the dividend appears secure amid stable oil prices, making it a reliable option for income-seeking investors.
We would consider FRU a decent royalty company. Payout ratio is 66% and the balance sheet is decent Debt is barely 1X cash flow. There is cyclical risk here and the dividend has been cut in other cycles. But barring further declines in commodity prices, the dividend is probably secure for a while. The stock is reasonably cheap, for a royalty company and we think it is decently managed. We would be OK owning this for a sector investor looking primarily for income. The last quarter was good.
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Small position for her, actively traded. Energy royalties are still a steady play. A mid-tier champ. Zero operational risk. Dividend hike, so she doesn't see it being cut. Yield is ~8.5%. Oil above $70 keeps royalty cash flowing. Drop in crude price or a global demand wobble would impact it. Value of 10/10, fundamentals 10/10.
(Analysts’ price target is $17.00)A major holding. It yields 9%, which is defendable even at lower oil prices. It's a royalty company, so there's no exploration risk. They have expanded into the US; hopes their next quarter shows US stability. They have done accretive deals in the US and are expanding in the Permian, because there is less room in Canada. Expect modest capital appreciation, but you get a stable 9% dividend. Good for income investors.
Just starting to break support. When it's this early into a break (a few days or a week), you have to cut it some slack. Sometimes you can get head fakes, so be careful. The old low from 2022 is a support level, and there's more support just above that.
At this point, it's hard to tell. Give it a tiny bit of time. If it doesn't recover quickly, he wouldn't want to own it.
Lots of people were unhappy with the latest equity financing. Typical for income-focused securities. REITs and royalty companies tend to pay out most cashflows to shareholders; so when they want to do something, they need to raise equity. Makes it unable to deploy a counter-cyclical playbook the way a CNQ can. And in a cyclical industry, that's what creates the most value.
Dividends have more than made up for share price volatility. Market not recognizing value of company - shares remain highly under valued. Has annualized ~12% returns since inception. Not as widely recognized in the markets. Will continue to hold. Expecting higher share price going forward.
Freehold Royalties Ltd is a Canadian stock, trading under the symbol FRU-T on the Toronto Stock Exchange (FRU-CT). It is usually referred to as TSX:FRU or FRU-T
In the last year, 24 stock analysts published opinions about FRU-T. 18 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Freehold Royalties Ltd.
Freehold Royalties Ltd was recommended as a Top Pick by on . Read the latest stock experts ratings for Freehold Royalties Ltd.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
24 stock analysts on Stockchase covered Freehold Royalties Ltd In the last year. It is a trending stock that is worth watching.
On 2025-05-02, Freehold Royalties Ltd (FRU-T) stock closed at a price of $11.44.
Boring name that pays you a 9.5% dividend yield, sustainable down to about $46 WTI. Not on anyone's radar screen. Asset quality not outstanding, but trades at half the multiple of other names. No exploration risk.