From Joe’s report – Freehold currently offers an annual dividend yield of approximately 9.3%, based on its share price of CAD $11.45. The company pays a monthly dividend of CAD $0.09 per share, totaling CAD $1.08 annually.
Freehold’s dividend payout ratio (distributions as a percentage of funds from operations) typically ranges between 60–70%, which leaves ample buffer to continue payments during periods of weaker commodity prices – their track record shows this. The dividend payout ratio in Q4 2024 was 66%.
Freehold executed $411.7 million in acquisitions during 2024, expanding its presence in the U.S. Permian Basin and enhancing its Canadian portfolio. These acquisitions contributed to a 10% year-over-year increase in proved and probable reserves per share . The company’s diversified asset base across North America positions it well for future growth.
<b>Bottom Line:</b>
Freehold Royalties offers investors a rare combination of high income and operational resilience. With a 9% yield, a 29-year track record of dividend payments, and a royalty-based model that minimizes capital risk, FRU stands out in the energy sector. While near-term technicals suggest caution and possible further downside, long-term fundamentals remain strong. For income-focused investors willing to weather commodity cycles, Freehold represents an attractive opportunity to lock in stable cash flow with upside potential as oil markets stabilize or strengthen.
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