Diversified Royalty (TSE:DIV) Reaches New 1-Year High – Still a Buy?

Diversified Royalty Corp. (TSE:DIV) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as C$4.14 and last traded at C$4.14, with a volume of 293039 shares traded. The stock had previously closed at C$4.07.

Wall Street Analysts Forecast Growth

DIV has been the topic of a number of analyst reports. Desjardins boosted 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 research report on Tuesday, February 10th. Canadian Imperial Bank of Commerce lifted their price target on shares of Diversified Royalty from C$3.50 to C$4.00 in a research note on Friday, November 14th. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of C$4.03.

Diversified Royalty Stock Up 0.2%

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 company has a 50-day simple moving average of C$3.87 and a 200 day simple moving average of C$3.67. The company has a market cap of C$706.88 million, a P/E ratio of 24.35 and a beta of 0.99.

Diversified Royalty Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Friday, February 27th. Investors of record on Friday, February 27th will be issued a dividend of $0.0238 per share. The ex-dividend date is Friday, February 13th. This represents a c) dividend on an annualized basis and a yield of 6.9%. Diversified Royalty’s dividend payout ratio (DPR) is presently 151.95%.

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.