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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 JayBankson Sep 21, 2024 2:42am
329 Views
Post# 36234422

Start questioning your holding…

Start questioning your holding…We are now in the area where we start to see resistance in this name.

If your risk adverse, I'd advise that jumping out or cutting your position would be wise as $2.90s tends to be a ceiling as $3 has only been broken twice since Covid. That said there has been additions to the royalty pools and the dividend is higher than on the previous breaks.

I'm mildly more risky a player (and tend to hold on longer than I should) I'm still maintaining my strategy of setting a trailing stop at $3.10 for around 50% of my position and seeing where we go. If the next quarterlies come out with a payout raise or interesting numbers, I may adjust that stop target...

I'd say the upside and downside potentials at this point is pretty close to the same, maybe a slight edge to the upside due to payout ratio being lower than recent historical normal, The downside has shown to be 30-40 cents from here, where as the upside is likely 30-50 cents on the current stats. But the likelihood of a pullback is much stronger than continued upside, likely in the range of 75-80% chance we don't break $3. I'm betting on above $3 obviously, but I've stayed to long on every run since I've jumped in the name....

Figured that those in the community should get a reminder on what territory we have entered and newly interested parties from the momentum and payout stats should be warned.
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