Diversified Royalty (TSE:DIV) Reaches New 12-Month High – Should You Buy?

Diversified Royalty Corp. (TSE:DIV)’s stock price reached a new 52-week high during mid-day trading on Monday . The company traded as high as C$3.83 and last traded at C$3.83, with a volume of 96956 shares trading hands. The stock had previously closed at C$3.77.

Analyst Ratings Changes

Separately, CIBC raised their price objective on shares of Diversified Royalty from C$3.50 to C$4.00 in a report on Friday, November 14th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of C$3.87.

Diversified Royalty Trading Up 1.6%

The business’s fifty day moving average price is C$3.63 and its 200 day moving average price is C$3.51. 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 firm has a market capitalization of C$652.15 million, a PE ratio of 22.53 and a beta of 1.03.

Diversified Royalty (TSE:DIV) last announced its quarterly earnings results on Thursday, November 13th. The company reported C$0.05 EPS for the quarter. Diversified Royalty had a return on equity of 11.46% and a net margin of 49.25%.The company had revenue of C$19.59 million during the quarter. As a group, analysts expect that Diversified Royalty Corp. will post 0.2 EPS for the current fiscal year.

Diversified Royalty Increases Dividend

The business also recently announced a monthly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Wednesday, December 31st were paid a $0.0238 dividend. The ex-dividend date was Monday, December 15th. This is a positive change from Diversified Royalty’s previous monthly dividend of $0.02. This represents a c) dividend on an annualized basis and a yield of 7.5%. Diversified Royalty’s dividend payout ratio (DPR) is 151.95%.

About Diversified Royalty

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.