RE:Your comments pleaseWhat do you mean by "a 100% paying dividend"?
One 'pro' is that DIV truly is diversified. The royalty sources are spread through very different industries, and this offers some defence against a total halt of the dividend. I am also of the opinion that much of DIV's royalty income is recession-resistant, which is another defence.
If you're one of the many investors here on Stockhouse who are not emotionally equipped to cope with negative observations, then stop reading this post now and move on.
One 'con' is that real-dollar dividend growth has been negative for the past seven years. The increases, combined with the COVID decrease, have not kept up with inflation. Luckily for me I first bought into DIV in 2015 at a yield of 9.5%. But nevertheless, the purchasing power of my dividend, when adjusted for inflation, has shrunk since then. That's seven years with negative dividend growth overall in real-dollar terms. But I started high so there's no real pain yet and I hope to have opportunity to swap out before any real pain begins.
A second 'con' is that, on a per-share basis, DIV's growth performance has been poor. Prospects for future growth -- without accretion-crushing dilution -- also seem poor.
So I've stopped liking it. I thought it had real (i.e. accretive per share) growth potential back in 2015, but I was wrong. It's not enough to add royalties; the additions must be accretive on a per-share basis and in the long term the dividend must be growing faster than inflation.
I recommended DIV to my son in 2015 and he got in at 10% yield. I have not recommended it since.
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Eizenberg wrote: I very much like this dividend stock and i would appreciate some of your comments here, what are the pro's & cons of this stock ? Personnaly, i like it because there is a 100% paying dividend since 2015.