The report on Boston Pizza Royalty Income Trust units is updated and now rated (higher) Buy at $21.00 to yield 6.6%. Because this is a top-line entity where you are essentially just buying a piece of the franchise fee, the yield is the biggest driver by far in its valuation. Read the report for more details. But essentially my thinking is that with a 6.6% cash yield and where the distribution is likely (although not guaranteed) to rise over the years, what is not to like? There would be room in most portfolios for this investment I think.
Our last update for these units was February 10 at $16.90 when they received our highest rating, the rare (higher) Strong Buy. Since then they are up 24%. This Spring I mentioned these units numerous times. Year to date they are up 17%. Even if the units had not increased at all the yield made the investment worthwhile.