FRU a Canadian energy company for dividend investors f you’re looking for a lower risk stock to gain exposure to the energy industry, consider Freehold Royalties Ltd (TSX:FRU.)
Freehold is not an energy producer itself. Instead, it owns over 6 million acres of land, which it charges other energy companies a royalty to produce on.
This gives Freehold much of the same upside potential as the rest of the industry. However, it’s also considerably safer than owning a single energy producer. Furthermore, because the stock is so well capitalized and in a great financial position, the risk is limited even further.
It’s a stock that’s best suited for dividend investors. However, it will still offer considerable capital gains potential, especially if the company increases its dividend substantially in the coming year like many investors are expecting it to.