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Freehold Royalties Ltd (FRHLF) acquires and manages Oil and Gas royalty interests in crude oil, natural gas, natural gas liquids, and potash properties.

It operates in two segments: (1) Canada, which includes exploration and evaluation assets and the petroleum, potash, and natural gas interests in Western Canada. (2) The United States, which includes petroleum and natural gas interests held in the Permian (Midland and Delaware), Eagle Ford, Haynesville and Bakken basins primarily located in the states of Texas, Louisiana, and North Dakota.

The majority of its revenue is generated from Canada Segment.

The company was founded in 1996 and is headquartered in Calgary, Canada.

Three key data points gauge Freehold Royalties Ltd or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

FRHLF Price

Over the past year, Freehold’s share price fell about 2.7% from $10.79 to $10.50 as of Monday’smarket close.

If FRHLF’s stock trades in the range of $9.00 to $14.00 this next year, its recent $10.50 share price might rise to $12.00 by next year. Of course, FRHLF’s price could drop about the same $1.50 amount, or more.

My upside estimate of $1.50, however, is about 63% of the average annual FRHLF price increase overthe past three years.

FRHLF Dividend

Freehold has paid monthly dividends since October 15, 2010. FRHLF’s most recent Monthly dividend, payable September 15th to shareholders of record August 30th is $0.0665.So, FRHLF’sannual dividend payout is projected to be $0.80 and yield 7.60% per Monday’s closing price.

FRHLF Returns

Adding the $0.80 anticipated annual dividend to Freehold’s estimated $1.50 possible price upside reveals a $2.30 potential gross gain per share for the coming year.

At Monday’s $10.50 closing price, a little over $1000 would buy 95 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.

Subtracting that maybe $0.11 brokerage cost from my estimated $2.30 gross gain per share makes a net gain amounting to $2.19 X 95 shares = $208.05 or about a 20.75% net gain.

This may be the time to pounce on Freehold Royalties Ltd shares. But beware, FRHLF is a oil, natural gas and potash royalty company. Furthermore, the estimated $76.00 dividend from $1000 invested comes in at just over 7 times greater than the recent single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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