Freehold Royalties Ltd (FRU-T)

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. 

The chart hasn't risen in the last 18 months and he doesn't see a catalyst to raise it. You collect the 7.75% yield as they acquire. Happy to collect that. Steady as she goes. 

We think FRU can work here. FRU operates as a royalty company that owns royalty interests in the oil, gas and potash properties. It is a much less capital intensive energy play as a result which makes it an attractive business that typically trades at a relatively higher valuation. It is still cheap at 9x forward earnings and we think it is a good dividend name that benefits from lower rates. Other names we do prefer are ENB, H, and X due to more stable business models.
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Defensive name that has 10% interest in (income fund). Royalty paying 8% yield to investors. Doesn't trade at same multiple as PrairieSky Royalty. Excellent acreage in the USA and Canada. Great long term investment. 

Investing is about yield and capital appreciation, not one or the other. Not expensive, but not cheap. Has no edge, nothing to make him think the business will be better in a few years. You're guessing on commodity prices, and that's not his game.

Low-risk dividend name that screams out to him. Yield is 7.9%, very safe, extremely sustainable at current pricing. Boring, not a "double overnight" kind of stock. Stock's mispriced at this point.

Takes a share of production, without those costs. Lower risk. Best upside is a higher price of oil. Down when the price of oil goes down. Oil prices are stable right now. So you could buy here, and then reduce when some incident or other causes oil to spike. Yield is 8%.

Politics is a terrible way to invest. Freehold will probably do well because of government environmental incentives and the ESG trend. Pembina will do better if the Republicans win in the US or the Tories in Canada. There will still be a need for pipelines; green energy won't do the trick.

Owns shares in company - a bedrock security. Excellent company with good assets and strong management team. Royalty structure creates high margins with low liability (no physical well bores). 

If you're looking for good exposure to the commodity, with a higher yield, he'd recommend this one. Yield is 7.8%, extremely sustainable at current prices. Very good exposure to oil and nat gas, without taking on capex and exploration risk.

Excellent team with strong dividend. Good assets with strong backing from CPP. Lots of prospective lands. Has been expanding USA land footprint. Would recommend holding for the long term. 

FRU is quite cheap at 11X earnings, and it has a strong balance sheet with net debt about 1X cash flow. Free cash flow is good and the dividend is good and now higher than its pre-covid level (it was reduced in the pandemic). In the context of the volatile oil and gas sector, we would be comfortable owning it. 
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A screaming buy at this level. Very cheap. Trades at a 40-50% discount to Prairie Sky and pays a higher 7.9% dividend at 13% free-cash flow yield.

Nearly 7% dividend yield - very strong. Less capital intensive business (doesn't drill wells). Owns shares in business. Recent weakness in share price - good time to buy. Strong management team. Excellent business for the long term shareholder. 

EPS beat estimates of 19c coming in at 23c. Revenue missed estimates of $83.4M coming in at $74.3M and declining 3% year-over-year. Profit increased 9.3% from the prior year. Royalty production dropped 0.7% in the quarter while average price per barrel also dropped 3.8% to C$54.81. The company recorded 22 new leases in the quarter. FRU will be highly dependent on oil prices & production for future growth. The quarter is OK despite the revenue miss and the dividend yield continues to be high.
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