Diversified Royalty Corp T.DIV

Alternate Symbol(s): BEVFF | T.DIV.DB.A

Consumer Cyclical Auto & Truck Dealerships

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The Company owns Mr. Lube, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademark. Mr. Lube is the quick lube service business in Canada, with locations across Canada. Mr. Mikes operates casual steakhouse restaurants primarily in western Canadian communities. Nurse Next Door is North America’s growing home care provider with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is a franchised supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing janitorial, building cleaning, and office cleaning services primarily in the United States. BarBurrito is a quick-service Mexican restaurant chain.

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Diversified Royalty Corp > Upgrade today. From Globe and Mail

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Comment by flamingogoldon Dec 06, 2022 10:14am

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Post# 35153161

RE:RE:RE:RE:Upgrade today. From Globe and Mail

The ones predicting a bad recession are the billionaires, Bezos, Icahn, Musk. News flash.. these guys are rich because they do the opposite of what everyone else does. They would love for investors to panic, selloff back to their lows where they are ready to buy it all up again for peanuts.

Tommy123 wrote:
The market is forecasting a really bad recession in 2023, yet DIV keeps climbing. Clearly the market doesn't agree with you!

maypeters wrote: if there is a sever recession no stock is immune especially the small cap stocks. If they go on a purchase spree like you said they will have to dilute shareholders at much lower prices. Also in a severe recession most small and medium sized businesses are trying to survive the recession and not try to grow their business.

A severe recession does not help anyone least of all DIV.

Tommy123 wrote:
Great! Yes, even a severe recession shouldn't impact DIV. They'll just go on a purchase spree. $5 in a year is doable.

hawk35 wrote:

CIBC World Markets analyst John Zamparo thinks Diversified Royalty Corp.’s (DIV-T +2.32%increase) $80-million acquisition of a royalty stream from Stratus Building Solutions “adds diversity and exposure to a recession-resilient industry, while its structure provides some protection if inflation lingers”

“Importantly, the equity raise solidifies the balance sheet for future deals, which seem more likely now that DIV has a blueprint for U.S. businesses,” he said. “DIV’s shares have rebounded of late, but we believe upside still exists. In what could be difficult economic conditions, DIV’s royalty structure and the continued solid performance from Mr. Lube should limit downside. Furthermore, we find the distribution attractive (7.9-per-cent yield), and the monthly payout structure is a compelling feature for investors in an uncertain macro environment.”

With that view, Mr. Zamparo raised his recommendation to “outperformer” from “neutral” with a $3.50 target, up from $3.25. The average is $3.98.

“DIV offers investors a relatively stable business with a high-quality flagship asset, a moderate level of diversification, attractive monthly income and a responsible payout ratio (we estimate 93 per cent for 2023),” he said.