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Diversified Royalty Corp T.DIV

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

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations across Canada. AIR MILES is a coalition loyalty program. Sutton is a residential real estate brokerage franchisor business in Canada. Mr. Mikes operates casual steakhouse restaurants in western Canadian communities. Nurse Next Door is a home care provider. Oxford Learning Centres is a franchisee supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning, and office cleaning services in the United States. BarBurrito is a quick-service Mexican restaurant food chain.


TSX:DIV - Post by User

Bullboard Posts
Comment by tkirk62on Aug 15, 2017 9:05pm
124 Views
Post# 26585681

RE:RE:On The Topic of Dividend Cuts

RE:RE:On The Topic of Dividend CutsThere most likely would not be a special dividend of 67 cents, nor should you want there to be. The point of cutting the dividend would be to preserve cash because it is taking a long time to find a new deal. All of this time the company has nver once presented the idea of paying out the Franworks money. The plan has always been to use the money to find a new royalty. If the company pays out the Franworks money, the next royalty deal they would have to issue shares at a tragically low price (surely below $2 if it's even that high).

Cut the dividend to something sustainable, hold on to the cash until you find a great royalty deal, and purchase it with all cash. or cash and debt. Share price will go up because income will be higher. What you propose I think would be paper shuffling that ultimately harms the company and shareholders.
Bullboard Posts