Recent Buy – FNV

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A quick update on a a recent purchase in my portfolio.

The recent strength in US$ has sent commodities and precious metals plunging, and with it all gold focused equities have taken a beating. This provided an ample opportunity to add to one of my core positions in probably the best company in the space. I added 50 shares of Franco Nevada (FNV.TO) @ CAD$79.90. FNV is a streaming and royalty company, with lucrative deals in the gold, silver and oil&gas space. The deal structure is so good, that Franco has to literally do nothing for the next 30 years and will have increasing revenue and will be able to pay a rising dividend to shareholders. Now that is a sleep-well-at-night kind of stock. Franco Nevada is also a dividend grower, having raised dividends for 10 consecutive years. Current yield is close to 1.5% and with this purchase, I add US$48 to my forward dividend income.

I also hold Franco Nevada for my daughter’s Nest Egg portion of portfolio. I will earmark 15 shares from this purchase for her. See further details on her portfolio here.

Full Disclosure: Long FNV.TO. Our full list of holdings is available here.

9 thoughts on “Recent Buy – FNV

  1. JC says:

    The mining space has been getting crushed, but I like this purchase here. I’m very interested in dipping my toes in the water a bit here and FNV sounds good. I’m not sure if they’re listed on the US exchanges so I might have to look at something like WPM because I like the streaming space a bit more than the mining. Especially for my first individual company purchase.

  2. Looks like another solid buy in a name that’s not familiar to me. Rare to find a company that’s in precious metals as well as oil and gas. Looks like this can be a good long term hold for any DGI portfolio . Thanks for sharing.

  3. Franco Nevada is a great company, probably the best company if you want exposure to gold. I love the fact that it’s a steaming company. They don’t have same risks like mining companies. When mining companies run into operation problems, that’s their problems.

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