Diversified Royalty delivered a decent quarter and hiked its dividend by 10%. The company's latest acquisition supports the move. We break down the numbers and tell you where we stand.
Diversified Royalty offers a diversified, shock-resistant royalty portfolio with an 8% yield, appealing to income-focused investors seeking stable, growing dividends. The recent Cheba Hut acquisition triggered a record 10% dividend hike and secures 50 years of inflation-protected royalty income, supporting long-term growth. Despite a high payout ratio of nearly 95%, strong cash flows, DRIP coverage, and prudent debt management make the dividend sustainable.
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Diversified Royalty's Q3-2024 results show royalty income surpassing prior year, with Mr. Lube driving growth; Mr. Mikes and Air Miles declined. The yield is now a shade under 9% and the payout ratio is under 100%. We go over the risks and see if this makes it to our buy list.
Diversified Royalty Corp reported solid top-line growth in Q2-2024. We are seeing some weakness below the surface though as some royalty streams appear to be quite weak. We analyze the setup and give you our verdict on this 8% yielder.
Diversified Royalty Corp. had solid Q1-2024 results, with total revenues over $15 million and income from operations rising 22% year over year. Most royalty partners are doing well, except for AIR MILES and Mr. Mikes, which showed weaker performance. We review the results and tell you why we sold the convertible debentures.