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Monday, October 8, 2007

Freehold Royalty Trust is Another Buy and Hold Security that Yields 11.70%

Freehold Royalty Trust - Symbol: FRU.un on the TSX

My 12 month target is CDN $16.00 /unit

Freehold Royalty Trust is roughly 65% weighted to oil, which will protect it from variation in natural gas prices.

It has a Low level of foreign ownership and a strong balance sheet.

Its presently trading at $15.39 per unit. It pays a $0.15 distribution per month ($1.80 per year) which results in a yield of 11.70%.

You won't get rich with this one but you won't go broke either.

The Yield fits nicely into our investing for income strategy. I feel this is a buy and hold type of security.

I don't own any units at this time.

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