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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

Post by hawk35on May 12, 2022 5:41pm
268 Views
Post# 34679588

Been watching this one

Been watching this oneBeen watching for a while but still have not taken a position.  My concern is the exposure to Mr. Lube. 
Lube represents almost 45% of revenues and this quarter they added more locations.  Normally that is a good thing but it exposes them to many risks. 

The transition to EV's is happening faster than most expected.  Most auto manufacturers in Ontario are retooling their plants for EV and the effect on Mr. Lube is unknown.  Same retooling is going on in the US.  Even a 10% negative impact on Mr. Lube business would put pressure on the dividend. 

The market would be a lot more comfortable with DIV if they could add additional partners.  Air Miles is likely seeing an upswing now but more diversification is needed.  The old adage of too many eggs in one basket is weighing on this stock.
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