Diversified Royalty (TSE:DIV) Hits New 1-Year High on Analyst Upgrade

Diversified Royalty Corp. (TSE:DIV) shares hit a new 52-week high during mid-day trading 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. The stock had previously closed at C$4.03.

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

Diversified Royalty Price Performance

The company has a fifty day simple moving average of C$3.84 and a two-hundred day simple moving average of C$3.64. The company has a debt-to-equity ratio of 90.70, a quick ratio of 1.74 and a current ratio of 4.28. 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.

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

Diversified Royalty Increases Dividend

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