Diversified Royalty (TSE:DIV) Stock Price Crosses Above 50-Day Moving Average - Time to Sell?

Key Points

• Diversified Royalty Corp. (TSE:DIV) stock price recently crossed above its 50-day moving average, with the latest trade at C$3.29.
• The company announced an increase in its monthly dividend to $0.0229, boosting the annualized yield to 8.4%.
• Analysts have a consensus target price of C$3.64 for the stock, with ratings ranging from hold to strong buy.

Diversified Royalty Corp. (TSE:DIV - Get Free Report)'s share price passed above its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of C$3.16 and traded as high as C$3.31. Diversified Royalty shares last traded at C$3.29, with a volume of 188,884 shares traded.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Raymond James Financial upped their target price 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. CIBC lifted their price target 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. Finally, Desjardins lifted their price target on Diversified Royalty from C$3.75 to C$4.00 in a research note on Thursday. One research 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's stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of C$3.70.

Diversified Royalty Price Performance

The company has a quick ratio of 1.74, a current ratio of 4.28 and a debt-to-equity ratio of 90.70. The company has a market capitalization of C$515.21 million, a P/E ratio of 17.59 and a beta of 1.57. The company's fifty day moving average price is C$3.18 and its 200 day moving average price is C$2.95.

Diversified Royalty Increases Dividend

The company also recently announced 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 8.2%. This is a boost from Diversified Royalty's previous monthly dividend of $0.02. Diversified Royalty's dividend payout ratio 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.