Viewing Company Diversified Royalty Corp. | StockChase
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Compiling comments that experts make about stocks while on public TV.

Diversified Royalty Corp. Stock Symbol: DIV-T

Notes:

Formerly Benev Capital (Oct 2014)

Last Price Recorded: $2.6400 on 2017-05-26

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Date Signal Expert Opinion Price
2017-05-25 COMMENT Peter Imhof

Payout ratio is more than 100%, but they sold one of their Alberta assets. They are looking to redeploy that cash from that, but for now they’re going to pay a little bit more than their actual cash flow numbers. Their dividend is quite high at about 8.5%, so people are worried about that. If you break up this company, you could get close to $3.


Price:
$2.630
Subject:
SMALL CAPS
Bias:
BULLISH
Owned:
Yes
2017-02-28 HOLD Peter Imhof

Pretty steady right now because they sold one of their assets and have a lot of cash on the balance sheet. They are looking for other things to deploy their capital. They own Mr. Lube which has been consistently growing through the years, as well as Sutton Real Estate. Feels comfortable with this, and it is just a matter of what they are going to deploy their capital in. Has a nice yield of 8.7%.


Price:
$2.570
Subject:
NORTH AMERICAN - SMALL
Bias:
UNKNOWN
Owned:
Yes
2017-02-24 COMMENT Andrey Omelchak

A pretty solid company. They’ve had some missteps in the past when they made an acquisition and overpaid for it. They tried to establish a footprint, and as a result he thinks they overpaid. However, he feels that management is very solid and the dividend yield is sustainable, although it is a pretty high payout ratio. Expects that there will be more acquisitions from them, and over time, it will become a solid, dividend, profile stock. However, the risks are still elevated as to their payout ratio.


Price:
$2.540
Subject:
CANADIAN & HEDGING
Bias:
UNKNOWN
Owned:
Unknown
2017-02-16 BUY Fabrice Taylor

A royalty company.  He likes that business model.  The CEO acquired a chain of royalty streams in an Alberta restaurant chain.  The dividend is close to 10%, but it is not covered by cash.  He recommends getting it with a DRIP program.  It is not the safest dividend stock but it is interesting.


Price:
$2.580
Subject:
NORTH AMERICAN
Bias:
SELECTIVE
Owned:
Unknown
2017-01-25 HOLD Bruce Campbell (2)

He really takes his hat off to Sean Morrison who was the one that structured the deals in some of the restaurant royalties. Their first royalty deal was Fran Works, and same-store sales declined quite dramatically because of their Alberta exposure, but he was able to sell that for more than what he had paid for it. He is now sitting on about $85 million, and is hunting for some more royalties. These things don’t happen fast. 8.5% dividend yield.


Price:
$2.620
Subject:
CANADIAN
Bias:
BULLISH
Owned:
Unknown
2017-01-12 COMMENT James Telfser

Of the 3 royalty businesses, this is the one that he would gravitate to if he were going to invest. It has a nice dividend yield which attracts investors. The one issue with these companies is finding good investments that are going to yield and feed that 10% dividend. In the last year, they have been divesting assets, but they have Mr. Lube as well as another real estate asset, which are good assets. He is on the sidelines until he sees something that they actually do. There are better places to get dividend growth.


Price:
$2.590
Subject:
CANADIAN
Bias:
BULLISH
Owned:
No
2016-10-26 COMMENT Bruce Campbell (2)

They want to reduce their share capital. Had made their transformational move into the royalty business when they bought Fran Works. Recently announced a two-part transaction where Cara was buying that, and were effectively getting paid back for the royalty they have. When they initially bought it, they issued shares to the man who sold them Fran Works, so they were bringing those shares back and cancelling them, meaning that their share count would drop. This company has 2 royalty streams, Mr. Lube and Sutton Real Estate. They have cash now and are looking for new royalties. The dividend is fairly secure.


Price:
$2.540
Subject:
CANADIAN
Bias:
UNKNOWN
Owned:
Unknown
2016-10-07 COMMENT Eric Nuttall

He owns this because he thinks it is a misunderstood dividend paying company that offers a pretty healthy dividend yield. About a month ago, they had 3 royalty streams with exposure to Western Canada, a market that has been under enormous pressure. The company is selling off the restaurant business, which they got a pretty good price. They will now be hugely reliant on Mr. Lube, which has had positive same-store sales for 20 years. Because they are selling off their restaurant, their payout ratio is in excess of 100%, but with the cash they are getting, they could overspend a minimum of about 5 years. Thinks they will make another acquisition. Feels the current cash flow is sustainable.


Price:
$2.440
Subject:
ENERGY & SMALL CAP EQUITIES
Bias:
BULLISH on OIL
Owned:
Yes
2016-09-29 BUY Peter Imhof

They just sold off an asset and got a huge amount of cash so their payout ratio, although over a 100 percent is okay.  He feels the dividend is safe.  He likes the management team.  It has been a tough environment for them with assets in Alberta.


Price:
$2.370
Subject:
NORTH AMERICAN - SMALL
Bias:
BULLISH on SMALL CAPS
Owned:
Yes
2016-09-09 PAST TOP PICK Fabrice Taylor

(A Top Pick Aug 12/15. Down 9.53%.) The trouble is that they have a royalty on a large group of restaurants in Western Canada, especially Alberta. Just sold their royalty stream to Cara Operations, so in a couple of months they are going to have $80 million in cash. He doesn’t think the dividend is in trouble, and has bought some more. Thinks the stock is going to do well.


Price:
$2.400
Subject:
NORTH AMERICAN
Bias:
UNKNOWN
Owned:
Yes
2016-08-30 COMMENT Eric Nuttall

A top 5 holding in his small-cap fund with a 9.2% yield. Payout ratio is around 100%, but they had to pay out $8 million due to a lawsuit. That is now over, so the next quarter will be the 1st quarter where you don’t have those embedded costs, which should bring the payout ratio down. You also get a hidden exposure to an improvement in the oil price, because part of their revenue comes from a restaurant chain in Alberta. At the same time there is an underpinning of real estate across the country and a royalty stream on Mr. Lube.


Price:
$2.460
Subject:
CANADIAN ENERGY & SMALL CAP
Bias:
UNKNOWN
Owned:
Yes
2016-08-26 COMMENT Bruce Campbell (2)

It seems things are getting close to being finalized with the Bennett litigation. That will mean the company will no longer have to pay for Mr. Bennett’s legal bills. The company just released a pretty decent quarter. However, their payout ratio came out to less than 100%, and the stock price actually started to move up off of that. It looks like the Alberta economy is going to start to pick up, which will mean a bottoming in the Franworks Restaurant, and you could see same-store sale improvements. It looks like the dividend is sustainable at these levels. If you are a longer-term investor and can wait for Franworks to turn itself around, you will then get a nice yield and probably some capital appreciation. When that happens, management is probably scouting out for the next deal as they want to make this a multi-royalty company.


Price:
$2.430
Subject:
CANADIAN
Bias:
UNKNOWN
Owned:
Unknown
2016-08-23 HOLD James Telfser

(Market Call Minute.) Very interesting business. Mr. Lube has got 4% same-store sales growth pretty consistently, but given the business structure, he is on the sidelines.


Price:
$2.380
Subject:
CANADIAN
Bias:
BULLISH
Owned:
No
2016-07-27 COMMENT Bruce Campbell (2)

The market is obviously a little concerned about the dividend which is fairly high. However, overall he feels it is going to be fairly safe, because the CEO built this company to be a royalty stream company, and as a result knows that that dividend has to be sacred, so will do what he can to keep it and maintain it. There is some cyclicality to the business, especially in the Fran Works, a restaurant business mostly out in Alberta. The CEO is always working on new royalty streams. He wouldn’t be surprised to see him come up with something brand-new.


Price:
$2.270
Subject:
CANADIAN
Bias:
BULLISH
Owned:
Unknown
2016-07-20 COMMENT Peter Imhof

There is worry about their 10% dividend, but he is not worried about it being cut at this time. Likes management. This has been in a tough position, as some of their restaurants were in Alberta. Mr. Lube, which they own, has been doing very well. Also, have royalties on Sutton, a real estate play. He still likes this.


Price:
$2.260
Subject:
NORTH AMERICAN - SMALL
Bias:
UNKNOWN
Owned:
Yes
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