Diversified Royalty (TSE:DIV) Sets New 1-Year High - Here's What Happened

Key Points

• 52-week high: Diversified Royalty shares reached a new 52-week high of C$4.32 (last C$4.31) on Wednesday, with about 154,854 shares traded and a prior close of C$4.23.
• Analyst action: Desjardins raised its price target to C$4.50 and kept a "buy" rating; overall analyst consensus is a "Moderate Buy" with an average target of C$4.03.
• Dividend and payout risk: The company announced a monthly dividend of $0.0238 (ex-dividend Apr 15, payable Apr 30) implying a 6.6% yield, but the dividend payout ratio is elevated at 126.79%, signaling potential sustainability concerns.

Diversified Royalty Corp. (TSE:DIV - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as C$4.32 and last traded at C$4.31, with a volume of 154854 shares changing hands. The stock had previously closed at C$4.23.

Wall Street Analyst Weigh In

Separately, Desjardins upped their price objective on shares of Diversified Royalty from C$4.00 to C$4.50 and gave the company a "buy" rating in a report on Tuesday, February 10th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Diversified Royalty currently has a consensus rating of "Moderate Buy" and a consensus target price of C$4.03.

Diversified Royalty Trading Up 1.7%

The company has a debt-to-equity ratio of 88.76, a current ratio of 0.68 and a quick ratio of 1.74. The stock has a market cap of C$735.34 million, a price-to-earnings ratio of 20.48 and a beta of 1.00. The company's fifty day moving average price is C$4.09 and its 200-day moving average price is C$3.82.

Diversified Royalty (TSE:DIV - Get Free Report) last posted its quarterly earnings data on Friday, March 20th. The company reported C$0.06 earnings per share (EPS) for the quarter. The firm had revenue of C$20.41 million for the quarter. Diversified Royalty had a net margin of 51.82% and a return on equity of 12.71%. On average, research analysts expect that Diversified Royalty Corp. will post 0.2 EPS for the current fiscal year.

Diversified Royalty Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Thursday, April 30th. Investors of record on Thursday, April 30th will be given a $0.0238 dividend. The ex-dividend date is Wednesday, April 15th. This represents a c) dividend on an annualized basis and a yield of 6.6%. Diversified Royalty's dividend payout ratio is currently 126.79%.

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.

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