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  5. FRU: What do you think about freehold for income and some upside in a TFSA ? [Freehold Royalties Ltd.]
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Investment Q&A

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Q: What do you think about freehold for income and some upside in a TFSA ?
Asked by Bernie on June 04, 2024
5i Research Answer:

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.