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"Alaris Royalty Corp is engaged in investing in operating entities. Its operations consist primarily of investments in private operating entities, typically in the form of preferred limited partnership interests, preferred interest in limited liability corporations in the United States, loans receivable, or long-term license and royalty arrangements."

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Alaris Royalty Corp > page 6 of May investor presentation - coverage ratios

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Post by mickeymouse on May 10, 2018 12:30am

page 6 of May investor presentation - coverage ratios

There is only 1 business in their current portfolio in the 1.0-1.2x earnings coverage ratio (SBI) - so their earnings cover their distributions to Alaris and the other companies have an even more signifcant earnings buffer to what they pay to Alaris.

If you are worried about their overall payout ratio go back to the posts by Carphanaum - with or without cash deployment the dividend is covered and with an "average" deployment year in 2018 the payout ratio will decline.

The whole business model is based on providing a dividend stream to investors - if you want a company that retains half their cash for growth you are in the wrong stock.

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