There are a wide variety of royalty companies and structures here in Canada. And in this article, I will attempt to highlight a variety of them along with some of the strongest options in the country.
What are the top Canadian royalty stocks to buy right now?
A&W Royalty Income Fund (TSE:AW.UN)
A&W Revenue Royalties Income Fund (TSE:AW.UN) is a trust established to invest in A&W Trade Marks Inc, which through its ownership interest in A&W Trade Marks Limited Partnership, owns the A&W trade-marks used in the A&W quick service restaurant business in Canada.
In layman’s terms, the company licenses its brand to franchisors and takes an “off-the-top” fee. In A&W’s case, it is 3%. This means that A&W Royalty takes 3% of the revenue from the restaurants inside its royalty pool.
From there, it deducts expenses and pays the remainder as a distribution to its unit holders. The unique situation with A&W Royalty is that it is one of the…
