BPF-UN.TO - Boston Pizza Income Fund

[Guest Schwab711]

This is the #1 Casual Restaurant in Canada owned by the Dragons Den member Jim Treliving. It pays a monthly dividend of just of 10 cents a unit (~$1.20/unit each year) which has grown a number of times since 2002 IPO. The underlying business is growing at 4-8% pretty consistently and BPF-UN.TO is entitled to 4% royalty. Management seems conservative in both capital allocation and business expansion. At ~$21 a share, yield is 5.7% and growing at mid-single digits in a great business with room for expansion. I don't think there's enough upside for myself but this looks like a great conservative investment for those looking for dividends and the monthly distribution is a bonus!

 

https://finance.yahoo.com/q?s=BPF-UN.TO

 

[valueyoda]

You should also take a look at Imvescor Restaurants, which is attractively priced, but with substantial dividend payout improvement potential.

[kab60]

You should also take a look at Imvescor Restaurants, which is attractively priced, but with substantial dividend payout improvement potential.

Imvescor looks interesting, but lots of stuff going on and a big shareholder thinning his position. Are you invested and if so, what is the thesis? New CEO and board cleaning up?

[FFHWatcher]

SIR Royalty Income Fund (most revenue from Jack Astors) and Pizza Pizza Royalty Corp have both been great steady dividend payors for years.  Neither has any material operations or expenses besides some debt that was created when they purchased the royalty rights from the operating companies.  The model has worked great for the investors as long as the operators manage to maintain and grow their business.  Obviously, in recessions restaurant sales decline but based on the royalty model, there should only be minor reductions in the dividend payouts at the royalty businesses...assuming the operating companies remain financially healthy. 

Both Pizza Pizza and SIR op-co's seem financially sound and their revenue is quite diversified and consistent, which bodes well for the royalty corps.

Both are Canadian and have sucked for US based investors based simply on the weak Cdn dollar.  Going fwd., it may not be a bad play for US$.  Not sure of the taxation on the dividend for Americans.