Connect with us

Hi, what are you looking for?

Uncategorized

Freehold Royalties faces dividend sustainability concerns

© Reuters.

Before the ex-dividend date on November 29th, investors are eyeing Freehold Royalties (OTC:) Ltd. as the company prepares to distribute a dividend of CA$0.09 per share on December 15th. To be eligible for this payout, shareholders must own shares before the ex-dividend date, considering the current share price of CA$14.42 (USD1 = CAD1.3690) which offers a yield of approximately 7.5%.

Investors have noted that although Freehold Royalties has been able to maintain its dividends within cash flow limits, there are sustainability concerns due to dividends exceeding profits by 118%. Over the past decade, there has been an average annual decrease in dividend payments of 4.3%, even as the company reports robust annual earnings growth at a rate of 55%. The high payout ratio stands at 76%, signaling that while dividends contribute significantly to investment returns, careful scrutiny is necessary when evaluating the company’s long-term payout capacity.

The divergence between increasing earnings and decreasing dividends suggests that investors should pay close attention to Freehold Royalties’ fiscal stability and consider potential warning signs related to its future performance before making investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Read the full article here

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Blogs Renault – 2 Constructors’ headings, 2 Rider headings: golf betting betway McLaren – 9 Constructors’ titles, twelve Driver headings FIA releases F1 2025...

Uncategorized

(Inspire Las vegas also provides a grip and you will Twist group.) There are also Megaways ports, which happen to be personally offered by...

Uncategorized

Articles Wonder Competitors: All Up coming Characters, Team-Ups and you will Maps Master Shark Faq’s: Ways to Your Greatest Questions relating to Wazdan’s Preferred...