Diversified Royalty (TSE:DIV) Hits New 12-Month High - Time to Buy?

Key Points

• Diversified Royalty Corp. shares reached a new 52-week high of C$3.37, closing slightly lower at C$3.36 with trading volume of 212,580 shares.
• Analysts show positive sentiment, with a consensus rating of "Buy" and an average price target of C$3.64, reflecting optimism in the company's performance.
• The company announced an increase in its monthly dividend to $0.0229, resulting in an annualized yield of 8.1%, despite a high dividend payout ratio of 130.49%.

Shares of Diversified Royalty Corp. (TSE:DIV - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The company traded as high as C$3.37 and last traded at C$3.36, with a volume of 212580 shares traded. The stock had previously closed at C$3.29.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. CIBC upped their price objective on Diversified Royalty from C$3.10 to C$3.20 and gave the stock a "neutral" rating in a research report on Thursday, June 19th. Raymond James Financial increased their price target on Diversified Royalty from C$3.40 to C$3.60 and gave the stock an "outperform" rating in a report on Thursday, June 19th. One investment analyst has rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, Diversified Royalty has a consensus rating of "Buy" and a consensus target price of C$3.64.

Diversified Royalty Stock Performance

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 company has a 50-day moving average of C$3.16 and a 200-day moving average of C$2.94. The firm has a market capitalization of C$516.73 million, a price-to-earnings ratio of 17.64 and a beta of 1.57.

Diversified Royalty Increases Dividend

The business also recently disclosed a monthly dividend, which was paid on Thursday, July 31st. Shareholders of record on Thursday, July 31st were paid a $0.0229 dividend. The ex-dividend date was Tuesday, July 15th. This represents a c) annualized dividend and a yield of 8.1%. This is a boost from Diversified Royalty's previous monthly dividend of $0.02. Diversified Royalty's dividend payout ratio (DPR) is currently 130.49%.

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.

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