Cormark Increases Earnings Estimates for Diversified Royalty

Key Points

• Cormark analysts raised their FY2025 earnings estimate for Diversified Royalty Corp. from $0.20 to $0.21 per share, signaling expected growth in the company's financial performance.
• Diversified Royalty recently increased its monthly dividend to $0.0229, resulting in an annualized yield of 8.2%, despite a high payout ratio of 130.49%.
• Several analysts have upgraded their price targets for Diversified Royalty, with the average target now set at C$3.70, reflecting a positive outlook on the stock.

Diversified Royalty Corp. (TSE:DIV - Free Report) - Equities research analysts at Cormark increased their FY2025 earnings per share estimates for Diversified Royalty in a research note issued to investors on Friday, August 8th. Cormark analyst J. Fenwick now forecasts that the company will earn $0.21 per share for the year, up from their prior estimate of $0.20. The consensus estimate for Diversified Royalty's current full-year earnings is $0.20 per share. Cormark also issued estimates for Diversified Royalty's Q4 2025 earnings at $0.06 EPS.

Other research analysts have also issued reports about the company. CIBC increased their price objective on Diversified Royalty from C$3.10 to C$3.20 and gave the company a "neutral" rating in a report on Thursday, June 19th. Raymond James Financial increased their price objective on Diversified Royalty from C$3.40 to C$3.60 and gave the company an "outperform" rating in a report on Thursday, June 19th. Finally, Desjardins raised their target price on Diversified Royalty from C$3.75 to C$4.00 in a report on Thursday, August 7th. One equities research analyst has rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of "Buy" and an average price target of C$3.70.

Diversified Royalty Stock Performance

Shares of DIV stock traded up C$0.03 during mid-day trading on Monday, reaching C$3.41. The stock had a trading volume of 292,132 shares, compared to its average volume of 310,054. The business's fifty day moving average is C$3.20 and its 200-day moving average is C$2.96. The company has a current ratio of 4.28, a quick ratio of 1.74 and a debt-to-equity ratio of 90.70. The firm has a market cap of C$521.32 million, a price-to-earnings ratio of 17.80 and a beta of 1.57. Diversified Royalty has a 1-year low of C$2.50 and a 1-year high of C$3.43.

Diversified Royalty Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 29th will be issued a dividend of $0.0229 per share. This represents a c) annualized dividend and a yield of 8.1%. The ex-dividend date of this dividend is Friday, August 15th. Diversified Royalty's dividend payout ratio (DPR) is 130.49%.

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.