Diversified Royalty (TSE:DIV) Stock Passes Above 50-Day Moving Average - Here's Why

Key Points

• Diversified Royalty Corp.'s stock crossed above its fifty-day moving average, trading at C$3.45 while its fifty-day average is C$3.29.
• Analysts have increased their price targets for the stock, with a current average target of C$3.70 and an overall Buy rating from equity researchers.
• The company announced a monthly dividend of $0.0229, representing an annualized yield of 8.0%, with a payout ratio of 130.49%.

Diversified Royalty Corp. (TSE:DIV - Get Free Report) crossed above its fifty day moving average during trading on Tuesday . The stock has a fifty day moving average of C$3.29 and traded as high as C$3.45. Diversified Royalty shares last traded at C$3.43, with a volume of 95,059 shares.

Wall Street Analyst Weigh In

Several analysts have issued reports on DIV shares. Raymond James Financial boosted their price objective 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. Desjardins upped their target price on Diversified Royalty from C$3.75 to C$4.00 in a report on Thursday, August 7th. Finally, CIBC upped their target price 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. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of C$3.70.

Diversified Royalty Stock Up 0.6%

The company has a market cap of C$524.38 million, a price-to-earnings ratio of 17.90 and a beta of 1.57. 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 business has a fifty day moving average price of C$3.29 and a two-hundred day moving average price of C$3.00.

Diversified Royalty Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 29th will be issued a $0.0229 dividend. The ex-dividend date is Friday, August 15th. This represents a c) dividend on an annualized basis and a dividend yield of 8.0%. 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.

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