Latest news with #FreeholdRoyalties
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13 hours ago
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How to Use $10,000 to Transform a TFSA Into a Cash Machine
Written by Amy Legate-Wolfe at The Motley Fool Canada With Canadians facing rising costs and tighter budgets, many are rethinking how to grow their savings. That makes the idea of building a cash-pumping Tax-Free Savings Account (TFSA) more appealing than ever. If I had $10,000 to work with today, I'd aim to build a portfolio that offers regular, reliable income without a lot of upkeep. That's why I'd split the investment between Freehold Royalties (TSX:FRU) and SmartCentres REIT (TSX: Freehold Royalties is a Canadian energy company that owns land and collects royalties from oil and gas operations on that land. It doesn't drill or operate wells, which keeps costs low. Instead, it earns income based on the production happening on its properties. That structure means Freehold still benefits from higher energy prices but avoids many of the risks that come with operating in the field. As of its latest earnings report, Freehold reported revenue of $86.6 million and net income of $56.3 million. Earnings per share (EPS) came in at $0.23, matching results from the same quarter last year. It currently trades around $12.75 per share and offers a monthly dividend of $0.09. If I invested $5,000 into Freehold today, I'd earn roughly $421 in annual income, all tax-free inside a TFSA. SmartCentres REIT offers another way to collect consistent income. It owns and manages shopping centres across Canada, many of which are anchored by grocery stores, pharmacies, and big-box retailers like Walmart. These tenants help create stable, long-term cash flow. In uncertain economic conditions, properties like this tend to hold their value and provide steady rent. In the first quarter of 2025, SmartCentres reported revenue of $228.6 million and net income of $7.9 million, reversing a loss from the same period in 2024. The real estate investment trust pays a monthly distribution of $0.15417 per unit, translating to about $1.85 annually, with a recent share price at $25.50. A $5,000 investment here would bring in just over $360 per year in tax-free income. What I like about this mix is the balance between sectors. Freehold is exposed to energy markets, which can be volatile, but the royalty structure provides downside protection. SmartCentres is tied to retail, but with its essential-service tenants, it's more resilient than many other commercial real estate plays. Together, they smooth out the bumps and keep cash flowing. With $10,000 split evenly between the two, I could generate about $780 in annual tax-free income. That's more than $65 a month! With plenty of potential for those payouts to grow over time. Both companies have histories of adjusting their payouts as conditions improve. So, if commodity prices rise or rental income increases, the dividend cheques could grow, too. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY INVESTMENT TOTAL FRU $12.79 390 $1.08 $421.20 Monthly $4,990.20 $25.59 195 $1.85 $360.75 Monthly $4,993.05 What makes this even more appealing is that the income arrives monthly. That's helpful for budgeting or reinvesting. In a TFSA, reinvested income can help compound returns faster since none of it gets eaten up by taxes. Over time, the portfolio could grow not just from dividends but also from capital appreciation if the share prices rebound. Of course, no investment is without risk. Energy markets fluctuate, and retail real estate can be sensitive to economic shifts. But both Freehold and SmartCentres have proven they can manage through different conditions. Each stayed profitable, paid distributions, and kept investors in the game. For Canadians looking to stretch every dollar and build a financial cushion, this approach makes sense. It's simple, stable, and focused on regular income. With mortgage payments on the rise and the cost of living climbing, having monthly income from solid Canadian stocks can offer some real peace of mind. If I had $10,000 to invest today, I wouldn't chase risky growth. I'd look to Freehold and SmartCentres to build a TFSA that works as hard as I do. With consistent payouts and room to grow, this duo could turn a modest sum into a powerful cash machine for years to come. The post How to Use $10,000 to Transform a TFSA Into a Cash Machine appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
5 Canadian Dividend Stocks I'd Buy Now and Hold for the Next 20 Years
Written by Amy Legate-Wolfe at The Motley Fool Canada If you want to build wealth over time, dividend stocks are a simple but powerful tool. They put money in your pocket regularly, no matter what the market is doing. And when you reinvest those dividends, they start to generate income of their own. This snowball effect, known as compounding, can quietly grow your portfolio over decades. So, if you're thinking long term, like the next 20 years, it makes sense to look for dependable, dividend-paying stocks. So, let's look at the top five to pick right now. Freehold Royalties (TSX:FRU) is a great place to start. It earns income by collecting royalties on oil and gas production from lands it owns rather than operating wells itself. That keeps costs low and income steady. In the last 12 months, it brought in $326 million in revenue and $152 million in net income. It pays out $1.08 per share annually, giving it a strong yield of about 8.6% at current prices. That's a hefty income stream that can be reinvested or used elsewhere, and Freehold's model means it's well-positioned to keep paying over time. Peyto Exploration & Development (TSX:PEY) is another dividend payer in the energy space, but this one is more hands-on. It drills and produces natural gas, and it's known for doing so efficiently. Peyto's most recent quarter showed earnings of $114 million and funds from operations of $225 million. About $66 million of that went right back to shareholders through dividends. It's also growing earnings fast, with a five-year average annual earnings growth rate of nearly 35%. It's one of those rare names that combines income and growth potential. Headwater Exploration (TSX:HWX) rounds out this energy trio. Unlike some peers, it has a strong balance sheet and minimal debt. It's posted $541 million in revenue and $200 million in net income over the last year. Its latest quarterly earnings per share (EPS) came in at $0.21, right in line with expectations. It's currently paying a dividend of $0.10 per share quarterly, and with cash on hand exceeding $125 million, there's room to grow that over time. It's a smaller name but one with strong fundamentals and a track record of disciplined spending. Switching sectors, Laurentian Bank (TSX:LB) offers exposure to Canadian financials. It's not as large as the Big Five banks, but that also means it trades at a discount. It recently reported revenue of $226 million, slightly down from the prior year, but beat expectations with earnings per share of $0.88. Its price-to-earnings ratio sits below 10, and it pays an annual dividend of $2.08 per share, yielding roughly 6.1%. It's the kind of solid, income-producing stock that rewards patient investors. Finally, Brookfield Renewable Partners LP (TSX: adds a renewable energy angle. While it reported a net loss last quarter, it grew funds from operations by 15% and secured new power contracts for 4,500 gigawatt-hours annually. It also maintains a strong liquidity position with $4.5 billion in available capital. currently pays $1.48 per unit annually, with a yield of about 6.2%. If you believe the future is green, this is a name to consider for the long haul. Holding dividend stocks like these over 20 years is less about timing and more about consistency. You collect income. You reinvest. You watch your shares multiply over time. The ups and downs of the market matter less when the dividends keep flowing. Right now, in fact, you could earn a total of $985.92 each year! COMPANY RECENT PRICE SHARES DIVIDEND TOTAL ANNUAL PAYOUT FREQUENCY INVESTMENT TOTAL $12.49 160 $1.08 $172.80 Monthly $1,998.40 $18.31 109 $1.32 $143.88 Monthly $1,996.79 $6.53 306 $1.32 $403.92 Monthly $1,998.18 $30.13 66 $1.88 $124.08 Quarterly $1,987.58 $30.00 66 $2.14 $141.24 Quarterly $1,980.00 Whether it's royalties, gas production, banking, or renewable energy, these five companies are in sectors that matter. And each one has shown a commitment to rewarding shareholders. For anyone building a portfolio designed to last, this is a strong foundation to start with or add to. The post 5 Canadian Dividend Stocks I'd Buy Now and Hold for the Next 20 Years appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners, Freehold Royalties, and Laurentian Bank Of Canada. The Motley Fool has a disclosure policy. 2025
Yahoo
17-05-2025
- Business
- Yahoo
Freehold Royalties (TSE:FRU) Will Pay A Dividend Of CA$0.09
Freehold Royalties Ltd. (TSE:FRU) has announced that it will pay a dividend of CA$0.09 per share on the 16th of June. This makes the dividend yield 8.8%, which will augment investor returns quite nicely. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. A big dividend yield for a few years doesn't mean much if it can't be sustained. Based on the last payment, earnings were actually smaller than the dividend, and the company was actually spending more cash than it was making. Paying out such a large dividend compared to earnings while also not generating any free cash flow would definitely be difficult to keep up. EPS is set to fall by 24.5% over the next 12 months. Assuming the dividend continues along recent trends, we believe the payout ratio could reach 149%, which could put the dividend under pressure if earnings don't start to improve. Check out our latest analysis for Freehold Royalties The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The dividend has gone from an annual total of CA$1.68 in 2015 to the most recent total annual payment of CA$1.08. This works out to be a decline of approximately 4.3% per year over that time. A company that decreases its dividend over time generally isn't what we are looking for. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Freehold Royalties has seen EPS rising for the last five years, at 102% per annum. Strong earnings is nice to see, but unless this can be sustained on minimal reinvestment of profits, we would question whether dividends will follow suit. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. While we generally think the level of distributions are a bit high, we wouldn't rule it out as becoming a good dividend payer in the future as its earnings are growing healthily. We don't think Freehold Royalties is a great stock to add to your portfolio if income is your focus. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 1 warning sign for Freehold Royalties that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Freehold Royalties First Quarter 2025 Earnings: EPS: CA$0.23 (vs CA$0.23 in 1Q 2024)
Revenue: CA$91.1m (up 23% from 1Q 2024). Net income: CA$37.3m (up 9.7% from 1Q 2024). Profit margin: 41% (down from 46% in 1Q 2024). The decrease in margin was driven by higher expenses. EPS: CA$0.23 (up from CA$0.23 in 1Q 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 1.9% growth forecast for the Oil and Gas industry in Canada. Performance of the Canadian Oil and Gas industry. The company's shares are up 10% from a week ago. Before we wrap up, we've discovered 1 warning sign for Freehold Royalties that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
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How I'd Generate $350 Monthly Income With a $20,000 Investment
Written by Christopher Liew, CFA at The Motley Fool Canada People buy dividend stocks to create passive income. The recurring payouts also serve as a cushion during inflationary periods or adverse market conditions. One positive thing about this time-tested investing strategy is the potential to earn a desired income amount. A $20,000 capital, for example, can generate $350 every month. However, the factors to consider include the stock choice, dividend yield, and time frame. The target is achievable via a lump sum investment, provided the yield is 9% and the holding period is 9.5 years. More importantly, the payout frequency is monthly, and we assume the share price is $11 and the yield is constant. The Registered Retirement Savings Plan (RRSP) is the ideal vehicle for a one-time investment since the limit is 18% of a user's annual taxable income to a maximum of $32,490. If you use the Tax-Free Savings Account (TFSA), it will take three tranches (around $7,000 contribution yearly) to complete $20,000. Freehold Royalties (TSX:FRU) in the energy sector is the logical choice given the parameters and assumptions above. At $11.49 per share, the dividend offer is 9.16%, while the payment is monthly. This small-cap stock has never missed a monthly dividend payment since 1999. With the slight change in yield, the monthly income after 9.5 years becomes $363.27. Whether you use the RRSP or TFSA, the money grows tax-free. The RRSP is a tax-saving tool because contributions are tax-deductible. However, RRSP withdrawals are subject to tax. All interest, capital gain, and dividend income in a TFSA, including withdrawals, are tax-exempt. Energy is the sector to watch in May 2025. The heavyweight sector has advanced +5.04% in the last 30 trading days. Meanwhile, Freehold Royalties is down -5.12% year to date but has gained +9.4%, notwithstanding the tariff uncertainty. The $1.93 billion company acquires and manages oil and gas royalties. Freehold derives revenues from royalties on crude oil, natural gas, and natural gas liquids as reserves are produced on its land holdings in North America. The royalty company benefits from the drilling activity of clients and has 'zero' capital investments. Moreover, its risk profile as a royalty owner is lower — only royalty payors shoulder capital and operational costs. Freehold's royalty and other revenue in 2024 declined 2% to $309.5 million versus 2023 due to lower commodity prices. However, net income increased 13% year over year to $149.4 million. In Q4 2024, profit rose 49% to $51.1 million compared to Q4 2023. The exposure to oil growth in both Canada and the United States, as well as the balanced portfolio, are competitive advantages. Because a significant portion of the Clearwater asset in Canada is still untested, Freehold sees serious exploration potential. Furthermore, the low-cost structure provides robust funds from operations to support dividend and cash flow growth. When investing in dividend-paying stocks, do a bit of research. Find out if the company can consistently disburse and sustain dividend payments. Last, reaching your desired monthly income takes time. A longer time frame compounds earnings and can help ride out market volatility. The post How I'd Generate $350 Monthly Income With a $20,000 Investment appeared first on The Motley Fool Canada. Before you buy stock in Freehold Royalties Ltd., consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Freehold Royalties Ltd. wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
