SIR Royalty Income Fund, bearing the ticker symbol SIRZF, has never been mentioned  as a candidate for any of my previous seven stock portfolios. This mention for Viking is its first.

SIR Royalty Income Fund, (The fund) holds an investment in SIR (Service Inspired Restaurant) Corp. The company is a privately held corporation that owns and operates a diverse portfolio of restaurants in Canada.

It has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar; and SIR’s signature restaurant brands, including Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose.

The fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. It generates revenue through the license and royalty agreement from its investments in partnership.

The company was founded in 2004 and is headquartered in Burlington, Canada.

Three key data points gauge SIR Royalty 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.

SIRZF Price

Over the past year, SIRZF’s price per share increased about 15.6% from $11.00 to $12.72 as of Thursday’s market close.

If SIRZF’s stock trades in the range of $10.00 to $14.00 this next year, its recent $12.72 share price might get up to $13.50 by next year. Of course, SIRZF price could go down about the same $0.78 amount, or more.

My upside estimate of $0.78 is

about $0.50 below the all time high for SIRZF’s stock price since its founding in 2004.

SIRZF Dividend

SIR Royalty Income Fund’s recent $0.07 monthly dividend pans out to $0.95 annually to yield 7.5% at Thursday’s closing price.

SIRZF Returns

Adding the $0.95 projected annual dividend to my estimated $0.78 price upside, reveals a $1.73 potential gross gain per share for the coming year.

At Wednesday’s $12.72 closing price, a little over $1000 would buy 79 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.13 per share.

Subtract that maybe $0.13 brokerage cost from my estimated $1.73 gross gain per share makes a net gain amounting to $1.60 X 79 shares = $126.40 or a 12.6% net gain.

In the next year our $1K investment in shares of SIRZF could generate about $75.00 in dividends. Furthermore, a single share of SIRZF stock at Wednesday’s $12.72  closing price is near one-sixth the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this may be the time to buy SIR Royalty Income Fund  based on its estimated dividends for 2023. The dividend from $1k invested is 5.89 times greater than the SIRZF single-share price. Consider yourself alerted.

This may be a time to pounce on SIR Royalty Income Fund. But beware, its price is range-bound, and just $1.10 below its all time $13.82 high posted in November of 2013.

The foregoing article is based on past history of  may be a time to pounce on SIR Royalty Income Fund. The only true measure of future performance is from active investment in the company.

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