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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

Comment by JayBankson Feb 16, 2024 1:45pm
151 Views
Post# 35884619

RE:RE:RE:No New Shares

RE:RE:RE:No New Shares

I looked at investopedia couple timbits, but this is still above my pay grade of full understanding.

The last raise they did for the Stratus deal also came from the 'Treasury' and the recorded shares outstanding number jumped 16.7 million, 16.4 million of which came from the bought deal issuance the others seem like they are regular increases likely from the DRIP...

It also seems like these shares do dilute the EPS, the Distributable income per share metrics and dividend payout ratio maths. As far as I'm concerned the internal maths of where ever these treasury shares are held on the balance sheet doesn't matter to me, if the ratios I and they use to try to value, analize and invest upon math's are affected/diluted buy this 're-placement' (I guess) of shares, I consider it dilution enough.
 

What Is Treasury Stock? 

Treasury stock, also known as treasury shares or reacquired stock, refers to previously outstanding stock that has been bought back from stockholders by the issuing company. The result is that the total number of outstanding shares on the open market decreases. Treasury stock remains issued but is not included in the distribution of dividends or the calculation of earnings per share (EPS).
 

Understanding Treasury Stock 

Treasury stock is a contra equity account recorded in the shareholders' equity section of the balance sheet. Because treasury stock represents the number of shares repurchased from the open market, it reduces shareholders' equity by the amount paid for the stock.

In addition to not issuing dividends and not being included in EPS calculations, treasury shares also have no voting rights. The amount of treasury stock repurchased by a company may be limited by its nation's regulatory body.

Treasury stock can be retired or held for resale in the open market. Retired shares are permanently canceled and cannot be reissued later. Once retired, the shares are no longer listed as treasury stock on a company's financial statements. Non-retired treasury shares can be reissued through stock dividends, employee compensation, or capital raising.

 

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