Boston Pizza Royalties Income Fund (BPZZF) is a limited-purpose open-ended trust.

It is engaged in the operation and franchising of Boston Pizza restaurants in Canada. The Trust distributes all available cash from operations to the Trust unit holders to the maximum extent possible. The company was founded in 2002 and is based in Richmond, Canada.

The company receives revenue in the form of royalty income.

Three key data points gauge Boston Pizza Royalties Income Fund or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

BPZZF Price

Boston’s price per share was pretty flat rising just $0.18 over the past year come Friday’s market close. Its modest share price increase amounted to about 1.5% from $12.02 to today’s $12.20.

If Boston’s stock trades in the range of $11.00 to $14.00 this next year, its recent $12.20 share price might get up to $13.00 by next year. Of course, Boston Pizza Royalties Income Fund price could go down about the same $0.80 amount, or more.

My upside estimate of $0.80 is about $1.00 below the average of BPZZF’s annual price increases over the past three years.

BPZZF Dividend

Boston Pizza Royalties Income Fund’s recent $0.08 monthly variable dividend equates to $0.95 annually to yield 7.81% at Friday’s closing price.

BPZZF Returns

Adding the $0.95 projected annual dividend to my estimated $0.80 price upside, reveals a $1.75 potential gross gain per share for the coming year.

At Friday’s $12.20 closing price, a little over $1000 would buy 82 shares. A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.12 per share.

Subtract that maybe $0.12 brokerage cost from my estimated $1.75 gross gain per share makes a net gain amounting to $1.63 X 82 shares = $133.66 or a 13.3% net gain.

In the next year our $1K investment in shares of BPZZF could generate about $78.10 in dividends. Furthermore, a single share of Boston’s stock at Friday’s $12.20  closing price is less than one-sixth the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a prime time to consider Boston Pizza Royalties Income Fund  based on its estimated dividends for 2023. The dividend from $1k invested is 6.4 times greater than BPZZF’s single-share price. Consider yourself alerted.

This may be a time to pounce on BPZZF. But beware, its price is range-bound, and nearly $11.00 below its all time $23.19 high posted in May of 2013.

The foregoing article is based on past history of Boston Pizza Royalties Income Fund. The only true measure of future performance is from active investment in the company.

Photo by Christopher Farrugia

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