Diversified Royalty Corp T.DIV

RE:RE:RE:RE:Share price

[Shirtlessnomore]

Couldnt agree more.

nedstar71 wrote: Tommy the issue I see with that is I don't think the problem is that the market thinks DIV needs to diversify more. If anything I think it may be happier if it was less diversified.
I often wonder where the share price would be if they just stopped all acquisitions after Mr.Lube and just had that and Sutton. I have little doubt we'd be higher than we are today. 
With that being said and for what it's worth, in the past two weeks I've increased my position substantially, including some more yesterday and today at the lows, and will continue to add to my position if the price stays low.  No matter how you slice it this should be much higher.  Those Mr. Lube numbers were amazing.

Tommy123 wrote: Well said! They've also hinted that they'll make another royalty acquisition soon. I think part of their strategy to get the share price up before they issue more shares for an acquisition is increase te dividend aggressively. I think they'll have to just pull the trigger now, even if it's not accretive. That may help diversify their holdings, and give the market ease that they have so few holdings, compared to Alaris, for example. 

JayBanks wrote:

So gonna throw out some quick number calculations that were discussed back in late May where we debated on value (not looking to go back to that back and forth) but we can look at some hard numbers and see what's up and make decent projections...

So since Tommy refered not seeing 10%+ again we can set some historical value over the past 11 months. So on the Ex Div Date we have seen yeilds between 8.23-7.17%. 8 of those months it's closed above 7.58%. 

@ .22 Cent div
7% = 3.14
7.25% = 3.03
7.50% = 2.93
7.75% = 2.84
8% = 2.75
8.25% = 2.67
 

@ .23 Cent div
7% = 3.28
7.25% = 3.17
7.50% = 3.07
7.75% = 2.97
8% = 2.88
8.25% = 2.79

@ .24 Cent div
7% = 3.43
7.25% = 3.31
7.5% = 3.20
7.75% = 3.10
8% = 3.00
8.25% = 2.91

This is just a quick chart that you can see where the price may go as the dividend increases and fit in your own feelings...

My thoughts:
- seems like management is into increasing the dividend a penny every quarter or 2 at the moment and I believe the could do the full 24 cents with comfort right now. It's going to get even more comfortable with the rate increases for a couple of our holdings starting I believe it was next month and anouther in the spring on different companies.
- longer term share prices in normalization may be closer to 7% yeild baring, but currently it seems as we get closer to 7.5% we get resistance or at least upside is muted.
- depending on your wants or thoughts, 8% represents a pretty good entry point or general buy point, for very good value or in my case adding to a position I'd like to hit 8.25% prices.
- a purchase at 8% today growing to 24 cent dividend in what might be next summer and some market appreciation to let's be conservative and say 7.25% area = .56 cent price increase or 20.4% gain with an increasing 8.73% yeild on cost of purchase so like 29% total return upside potential conservatively in 6-9 months

My data base comes from: https://www.marketbeat.com/stocks/TSE/DIV/dividend/