Diversified Royalty (TSE:DIV) Hits New 12-Month High After Analyst Upgrade

Diversified Royalty Corp. (TSE:DIV) hit a new 52-week high on Wednesday after Desjardins raised their price target on the stock from C$4.00 to C$4.50. Desjardins currently has a buy rating on the stock. Diversified Royalty traded as high as C$4.07 and last traded at C$4.06, with a volume of 177723 shares trading hands. The stock had previously closed at C$4.03.

Separately, Canadian Imperial Bank of Commerce lifted their target price on Diversified Royalty from C$3.50 to C$4.00 in a report on Friday, November 14th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Diversified Royalty currently has an average rating of “Moderate Buy” and an average target price of C$4.03.

Diversified Royalty Price Performance

The company has a quick ratio of 1.74, a current ratio of 4.28 and a debt-to-equity ratio of 90.70. The company has a market capitalization of C$693.22 million, a price-to-earnings ratio of 23.88 and a beta of 0.99. The stock’s 50-day simple moving average is C$3.83 and its two-hundred day simple moving average is C$3.64.

Diversified Royalty (TSE:DIV) last released its earnings results on Thursday, November 13th. The company reported C$0.05 EPS for the quarter. The business had revenue of C$19.59 million during the quarter. Diversified Royalty had a net margin of 49.25% and a return on equity of 11.46%. Equities research analysts predict that Diversified Royalty Corp. will post 0.2 earnings per share for the current year.

Diversified Royalty Increases Dividend

The company also recently disclosed a monthly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Wednesday, December 31st were issued a $0.0238 dividend. This represents a c) dividend on an annualized basis and a yield of 7.0%. The ex-dividend date was Monday, December 15th. This is an increase from Diversified Royalty’s previous monthly dividend of $0.02. Diversified Royalty’s payout ratio is 151.95%.

Diversified Royalty Company Profile

Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. As a part of the investment strategy, the firm always purchases trademarks of the companies it is going to acquire. The company gives its partners the benefit of full operational control of their business, participation in the growth of their company, and tax deductibility on royal payments. All of the company’s operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.