Diversified Royalty (TSE:DIV) Trading Up 7.3% - Should You Buy?

Shares of Diversified Royalty Corp. (TSE:DIV - Get Free Report) rose 7.3% during mid-day trading on Wednesday . The stock traded as high as C$3.08 and last traded at C$3.08. Approximately 1,855,149 shares traded hands during mid-day trading, an increase of 531% from the average daily volume of 293,943 shares. The stock had previously closed at C$2.87.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Desjardins set a C$3.75 price target on shares of Diversified Royalty and gave the company a "buy" rating in a research note on Wednesday, February 26th. CIBC lifted their price target on shares of Diversified Royalty from C$3.00 to C$3.10 and gave the company a "neutral" rating in a research note on Tuesday, March 25th.

Diversified Royalty Stock Up 8.7%

The stock's fifty day moving average is C$2.89 and its two-hundred day moving average is C$2.86. 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 firm has a market cap of C$476.99 million, a P/E ratio of 16.29 and a beta of 1.57.

Diversified Royalty Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Monday, June 30th. Stockholders of record on Monday, June 30th will be issued a $0.0208 dividend. This represents a $0.25 dividend on an annualized basis and a dividend yield of 8.00%. The ex-dividend date of this dividend is Friday, June 13th. Diversified Royalty's payout ratio is 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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