Diversified Royalty (TSE:DIV) Sets New 12-Month High – Still a Buy?

Diversified Royalty Corp. (TSE:DIV)’s share price hit a new 52-week high during trading on Monday . The company traded as high as C$3.94 and last traded at C$3.91, with a volume of 29834 shares. The stock had previously closed at C$3.90.

Wall Street Analyst Weigh In

Separately, CIBC lifted their price objective on shares of Diversified Royalty from C$3.50 to C$4.00 in a research report on Friday, November 14th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of C$3.87.

Diversified Royalty Trading Up 0.5%

The stock has a market cap of C$667.47 million, a price-to-earnings ratio of 23.06 and a beta of 1.03. The company has a debt-to-equity ratio of 90.70, a current ratio of 4.28 and a quick ratio of 1.74. The company’s fifty day moving average price is C$3.68 and its 200-day moving average price is C$3.53.

Diversified Royalty (TSE:DIV) last released its earnings results on Thursday, November 13th. The company reported C$0.05 earnings per share for the quarter. The company had revenue of C$19.59 million for the quarter. Diversified Royalty had a net margin of 49.25% and a return on equity of 11.46%. On average, research analysts expect that Diversified Royalty Corp. will post 0.2 EPS for the current fiscal year.

Diversified Royalty Increases Dividend

The company also recently declared a monthly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Wednesday, December 31st were given a dividend of $0.0238 per share. The ex-dividend date of this dividend was Monday, December 15th. This represents a c) dividend on an annualized basis and a yield of 7.3%. This is an increase from Diversified Royalty’s previous monthly dividend of $0.02. Diversified Royalty’s payout ratio is presently 151.95%.

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. All of the company’s operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.