Following the general collapse in the U.S. equity markets, Franco-Nevada Corp. (FNV, Financial) has lost as much as 4.6% and is now trading at the mid-April 2017 level of $69.03 per share.
As a result, Franco-Nevada Corp represents an incredible buying opportunity because it is trading far below the 200, 100 and 50-SMA line. The current share price is 5.5% below the midst of a $60.10 to $86.06 52-week range and the Relative Strength Indicator (14-days) is 21.13 of a 20 to 80 range, nearly reaching the so-called “oversold levels”. In addition, analysts predict a 17% growth in the market value of the stock in 2018.
Source: Yahoo Finance
I wouldn’t miss the opportunity to invest in this stock at current market levels.
Being a precious metal royalty and streaming company, Franco-Nevada Corp’s financials are relieved from mining costs and its income is derived from a well-diversified portfolio of assets.The company’s assets and interests are geographically well distributed and cover not only precious metals and other minerals but also the oil and gas industry.
Franco-Nevada is a debt-free company is able to use free cash flow entirely for business growth purposes and to disperse quarterly dividends to shareholders. A quarterly dividend of 23 cents per share, was announced by the company on Thursday, Feb. 8.
Franco-Nevada will pay the quarterly dividend on March 29 to shareholders of record as of March 15. The payment is in line with the previous one and the ex-dividend date is scheduled for March 14.
The forward dividend is 92 cents and the forward yield is 1.33% versus an industry median of 2.44%.
(Disclosure: I have no positions in any security mentioned in this article.)
