Diversified Royalty (TSE:DIV) Sets New 52-Week High on Analyst Upgrade

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) reached a new 52-week high during trading on Thursday after Desjardins raised their price target on the stock from C$3.75 to C$4.00. The stock traded as high as C$3.37 and last traded at C$3.36, with a volume of 212580 shares changing hands. The stock had previously closed at C$3.29.

A number of other equities research analysts have also recently commented on DIV. Raymond James Financial lifted their target price on Diversified Royalty from C$3.40 to C$3.60 and gave the stock an "outperform" rating in a research note on Thursday, June 19th. CIBC boosted their price objective on Diversified Royalty from C$3.10 to C$3.20 and gave the stock a "neutral" rating in a report on Thursday, June 19th. One analyst has rated the stock with a hold rating, two have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of C$3.70.

Diversified Royalty Price Performance

The firm has a 50 day moving average price of C$3.19 and a 200 day moving average price of C$2.95. The stock has a market cap of C$510.62 million, a P/E ratio of 17.43 and a beta of 1.57. The company has a quick ratio of 1.74, a current ratio of 4.28 and a debt-to-equity ratio of 90.70.

Diversified Royalty Increases Dividend

The firm also recently declared a monthly dividend, which was paid on Thursday, July 31st. Investors of record on Thursday, July 31st were paid a dividend of $0.0229 per share. The ex-dividend date of this dividend was Tuesday, July 15th. This represents a c) dividend on an annualized basis and a dividend yield of 8.2%. This is an increase from Diversified Royalty's previous monthly dividend of $0.02. Diversified Royalty's dividend payout ratio 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.