Diversified Royalty Corp T.DIV

Start questioning your holding…

[JayBanks]

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.

[nedstar71]

With lowering interest rates this could still slowly contine to climb a dime or two from here. As long as they don't have another barely accretive acquisition to dilute for it should be ok. That being said DIV acts bad in a bad market and mediocre in a good market. Uninspiring business model, management settled for mediocrity, worth holding a small position for the dividend but the company

[Martincat]

I share your comments Nedstar...Main concern here is insiders/mgt compensation, uniholders interest is secondary....I rest my case!

[pierrelebel]

In my opinion, it is way too early to think about selling DIV. Take a look at the long term chart. The shares are heading back to the $3.30/3.40 area in 2025. In the meantime the dividend yield exceeds 8% while waiting for more capital appreciation. Current and projected cash flow, profit, dividend and payout ratio all point towards that range, despite share dilution in the last few years. This

[nedstar71]

I wouldn't agree with the last statements.  This stock isn't great for investors  At best it may be good for income seekers who don't need capital appreciation.  It may also be good for longer term flippers as the range seems pretty established.

[dogatcat]

I disagree.  My average cost is $2.55.  Happily collecting a safe divy with nice capital apprecation.   Mr . Lube continues to be a huge SSS story.   So many other nice dividend payers.  Interest rates are heading lower....much lower.   We will see 1/2 point cut this month.   We are in the sweet spot.   Div moving to $3.50

[BlueJay2020]

So you're looking at a potential 15% capital appreciation, plus the divi.  That's pretty good if it all pans out.  Also a rick of a similar level of capital downside given the historical trading range of this stock.  I currently own 24000 at $2.62 average.  However, I can get the same distribution and potential larger upside in a much larger company like BCE, which has

[pierrelebel]

"... I can get the same distribution and potential larger upside in a much larger company like BCE..." DIV or BCE?  I own both. BCE because every my wife and I are in our late 70's and I think most seniors should own BCE for long term yield and security (despite the drop of the last two years). DIV is well diversified, offers a high yield with potential capital appreciation

[flamingogold]

"I'm just not sure who will be paying $3.40 for this stock" That will depend on the continued strength of the overall market. The ones who will likely pay $3.40 are probably not the ones who bought in the mid $2's. Two different investor minds, one is the bottom fisher, the contrarian buying mid $2's or lower when the economic hard landing scenario was crowding headlines

[dogatcat]

I am loving the price increase,  We can ride low interest rates higher and higher payouts!

[BlueJay2020]

It will also depend on relative better options. Divi will be 7.3 percent ar $3.40 - double what a GIC will give you, excluding preferential tax treatment  Will  better' options be available? They are vanishing fast.  BCE/Telus still available, also FRU.  Timbercreek also, and Sienna.