Diversified Royalty Corp T.DIV

Refreshing honesty

[taman1]

and great discussion going here.

It really boils down to when you bought DIV. Those that bought before the bought deal at $3.20 are quite disappointed and that's understandable. Those that bought after the bought deal and after initial Covid 19 are all very happy. That's understandable.

Whatever the case DIV is a great company at this price. There is a great yield. Most of their investments are doing as well as they can given the Covid-19 situation. Eventually Covid-19 will be over like all pandemics. The vaccines are working despite the deadly variants. There will be an inevitable burst in spending and hopefully Mike will get some of that. Air miles will be fine. Amex also have an AM card. I love AM. Sobey and Metro are my favorite grocery stores. Just shopping here I get over 500 airmiles a month waiting to be used when the travel boom resumes.

Now there is a target of $4.00 by an investment house. That's not a negative.

When this covid-19 is over $3.20 is the base px and the reason is obvious. Unless you are of the opinion covid-19 will continue indefinitely ......

GLTA

[TickerTwit]

We bought in the low 2's originally, so while we didn't load up at 1.50 last year (already overweight) we could sell today with 5-6 years of dividends and a small capital gain and not be entirely unhappy, But I had higher hopes for DIV. I don't see us fully divesting, but reducing our weight is on the table right now. Finding the 'right' things to swap into for continued income

[JayBanks]

  I'm in the same entry area as you, but not overweight. I'd be interested in adding more but at an attractive price. Even with a price that I feel is currently overvalued, I would not be looking to sell out unless that overvalue becomes major, I will be content to just hold as my entry point makes the dividend very hard to replace elsewhere like someone else said. I'm sure

[Tommy123]

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[JayBanks]

Tommy, Two weeks ago I made a post on my argument of finding value based on historical data of where the stock usually trades in relation to the dividend or more specifically the 5 year average yeild, most of it is influenced by the years before Covid. It's not a prefect way of valuing a company I know, but it shows a pretty good picture of how shares have traded in the past based on a

[babedinkleman]

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[JayBanks]

I agree with you, and I don't buy a stock based on this reasoning. That said it does paint a good base picture on where it is and you look into this deeper on why something is floating off historical numbers. I personally feel in this case tho it is fairly accurate within a range. Atleast I'm throwing numbers and analysis out there, not just pulling numbers outta thin air and trying to

[babedinkleman]

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[babedinkleman]

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[Tommy123]

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[TickerTwit]

The guy who took me through the basics of corporate financial analysis was of the opinion that very rarely is there predictive value in going back more than five years. He was CFO of a leading construction firm for a long time and now teaches post-grad finance. The only cases where I've seen data suggesting something further in the past matters is in businesses where assets can be impaired in

[JayBanks]

  Just so you know, the months below 7% already includes the months below 6.5% so you don't need to add them together... And I haven't misled anything, I'm giving FACTUAL data that everyone can see and pull. What would be a date area that you would say the company completed its transition? If you wanna say 9/27/17 and exclude Covid after 2/12/20 then of those 28 months

[Capharnaum]

Let me start by saying that I am not currently a shareholder of DIV (I'm following as I may jump in at some point). I do believe that the premise which is stock trades at a multiple of the dividend is flawed. It is possible for a stock that pays a stable payout ratio with stable no risk interest rates over a really long time that the stock price matches directly the yield on a multiple

[JayBanks]

  Excellent post, this is the kinda convo I want to see and have. Yes, my price off yeild is flawed and but gave a novice base for someone to come along with better data points. But if your numbers from memory are accurate, we are in the same region as my original argument is that we are at an expected value, but if I was a buyer I'd want a better deal thus I said it was overvalued.

[wheeloffortune]

Just to add, AT&T was once thought to be a solid high dividend paying blue chip stock for years.  A couple weeks ago, they cut their dividend and acquired another company.  Future dividends are not guaranteed if they paid it for years in the past.

[Tommy123]

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[babedinkleman]

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[JayBanks]

@babedinkleman No worries bud, just trying to create a conversation based on something, not just "it should be at $3" or "it's going to $4". When people make those comments, I would like see data on why you feel that way so I can see where I maybe wrong and need to reassess, but when no one shows you why they are throwing numbers it creates arguments that are the normal

[Tommy123]

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[taman1]

Certainly being cautious especially in these times is very advisable.  IMHO the drop in cases is more due to vaccines. Shutdowns of course help but in the current scenario with the more infectious variants lurking, the cases are dropping esp ICUs appear decreasing remarkably. Alberta is very confident. Other countries are showing the same results with higher vaccination rates, cases and

[Shirtlessnomore]

I'm not convinced it's vaccines or shutdowns, I firmly believe its seasonal as we have followed the identical timeline as last year. Different countries have had different outbreaks at different times. Also to add to that the U.S has roughly 10 times the people and their new cases are 10 times more so no further ahead yet more vaccinated, add to that they no longer test the same there, yes

[rochester3]

here we go again with the lala land story based on hope and future price targets like i said before lol