2024-05-27 07:58:48 ET
Summary
- Freehold Royalties owns one of the largest non-government portfolios of oil and gas royalties in North America.
- Freehold's 8.0% dividend yield should be safe down to US$50 WTI.
- The slow and steady value accretion from the royalty business model outperforms in the long run by avoiding boom-bust returns and share dilutions.
As a long-time resource investor, I am often asked why I prefer royalty companies vs. producers since producers exhibit higher stock returns during rallies. In this article, I will attempt to answer this question using examples from Freehold Royalties' ( FRU:CA , FRHLF ) corporate presentations to demonstrate why I prefer their business model....
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Freehold: Sleep Well At Night