Do you want to log into your investment account each month and see dividend cash added to your balance without selling a single share? If so, you may want to consider investing your hard-earned savings in fundamentally strong monthly dividend stocks.
That regular rhythm of monthly payouts could make income investing more rewarding, especially when the company behind those payments also has room to grow.
Freehold Royalties (TSX:FRU) could be a good example of that kind of investment. It gives investors exposure to oil and natural gas activity across a large North American land base. Instead of relying only on one producing region, it collects royalties from assets in Canada and the United States. Its shares have rallied sharply in recent quarters and currently offer an over 6% annualized dividend yield.
In this article, I’ll spotlight why Freehold Royalties could be a compelling monthly income stock for investors who also want long-term upside.
A monthly dividend stock worth buying now
To put it simply, Freehold Royalties is a North American energy royalty firm with interests across roughly 6.1 million gross acres in Canada and about 1.2 million gross drilling acres in the United States. Rather than drilling wells itself, it earns royalty income from production on its lands, giving it exposure to the energy sector without taking on the same operating risks and responsibilities as producers.
FRU stock currently trades at $16.54 per share with a market capitalization of $2.7 billion. The stock has climbed 25% over the last year and is up 9% so far in 2026. At the current share price, it offers a 6.5% annualized dividend yield and pays shareholders every month. The company recently declared its monthly dividend of $0.09 per share for July 2026.
This attractive mix of dependable monthly payouts and strong share price performance makes Freehold Royalties an attractive stock for Canadian investors looking to build a reliable passive income source for the long term.
Recent performance supports the dividend
In the first quarter, Freehold generated $77.8 million in revenue, with crude oil and natural gas liquids contributing about 90% of the total. Meanwhile, its funds from operations reached $59 million, while the company returned $44 million to shareholders through monthly dividends.
Compared with a year ago, its production and revenue declined as drilling activity slowed during the second half of 2025 when benchmark oil prices weakened. Canadian natural gas drilling also remained limited because of persistently weak gas prices.
Nevertheless, the company’s latest results still improved from the previous quarter. The dividend payout ratio also improved to 75% from 87% in the previous quarter, reflecting stronger cash generation.
Why could it keep rewarding investors?
The monthly dividend is only part of the Freehold stock’s investment appeal because it continues to strengthen its royalty portfolio to accelerate its growth further. During the first quarter, the company invested $19 million to acquire royalty interest lands in the core of the Permian basin, adding more premium light oil exposure to its portfolio. Across its royalty lands, 223 gross wells were drilled during the quarter, with activity largely focused on crude oil opportunities in the Permian, Eagle Ford, Viking, Clearwater, and southeast Saskatchewan.
Freehold now expects its production to remain moderate through the second quarter before increasing during the second half of the year as more U.S. wells are completed.
For investors looking to earn reliable cash every month, Freehold Royalties stock offers a compelling combination of a 6.5% dividend yield, a diversified North American royalty portfolio, and ongoing investments that could support future cash flow growth. Those qualities make it an attractive monthly dividend stock to consider buying right now.
