RE:RE:RE:RE:Upgrade today. From Globe and MailThis from the same guy who just posted $5 in a year. You should really have a talk with your "neighbour" Sean lol. Honestly, I would be perfectly fine if this goes back to the $2.50's where I initially bought so I can pick up some more. I am holding only for the distribution, any cap gain is gravy. The rest is theatre including you.
Tommy123 wrote: As the Globe and Mail says, they're recession resistant businesses.
I think we may test $2.80 again, but if we hold close to $3, I hope that they make a few more acquisitions over the next few quarters. There are some desperate businesses out there who may not weather the recession without some cash.
In fact, I've heard from a friend in Culver City that DIV's latest acquisition, Stratus, is infamous, and that no one in the US would touch them for investment purchases. The owners apparently want a quick pay day by courting an investor that doesn't know much about their reputation. Stratus allegedly is a scam, and their business is potentially on the verge of a collapse with lawsuits, depending on how they pan out The friend didn't get into too much detail, but he said there are allegations that they target non-English speakers, and don't provide support and then cancel the franchise if they complain. I'm not sure how long they'll survive, and it may be on the way down. It has a terrible reputation, and I'm perplexed why Sean was desperate enough to invest in them.
flamingogold wrote: Incredibly stupid comment. We just emerged from a major economic contraction... remember 2020... covid? Where was the buying spree for DIV then? Instead the stock cratered to as low as $1.20 along with the markets. This will not benefit from a severe recession at all since the majority of their income comes from consumer spending. If DIV is paying you to promote this, you should be fired.
Tommy123 wrote: Great! Yes, even a severe recession shouldn't impact DIV. They'll just go on a purchase spree. $5 in a year is doable.
hawk35 wrote:
CIBC World Markets analyst John Zamparo thinks Diversified Royalty Corp.’s (DIV-T +2.32%increase) $80-million acquisition of a royalty stream from Stratus Building Solutions “adds diversity and exposure to a recession-resilient industry, while its structure provides some protection if inflation lingers”
“Importantly, the equity raise solidifies the balance sheet for future deals, which seem more likely now that DIV has a blueprint for U.S. businesses,” he said. “DIV’s shares have rebounded of late, but we believe upside still exists. In what could be difficult economic conditions, DIV’s royalty structure and the continued solid performance from Mr. Lube should limit downside. Furthermore, we find the distribution attractive (7.9-per-cent yield), and the monthly payout structure is a compelling feature for investors in an uncertain macro environment.”
With that view, Mr. Zamparo raised his recommendation to “outperformer” from “neutral” with a $3.50 target, up from $3.25. The average is $3.98.
“DIV offers investors a relatively stable business with a high-quality flagship asset, a moderate level of diversification, attractive monthly income and a responsible payout ratio (we estimate 93 per cent for 2023),” he said.