BEVFF - Diversified Royalty Offers An 8.6% Dividend Yield And A 7.3% Bond Yield
2024-02-05 10:55:56 ET
Summary
- Diversified Royalty has acquired a royalty on BarBurrito at a multiple of less than 9 times the anticipated royalty income.
- The company's cash flow remains strong and fully covers its dividend yield of 8.6% on common stock.
- The recent acquisition of BarBurrito will provide additional cash flow and allow for potential growth and debt reduction.
Introduction
Diversified Royalty ( DIV:CA ) ( BEVFF ) is a Canadian company focusing on acquiring royalties on existing and cash flowing businesses. The recent acquisition of a royalty on BarBurrito, a Canadian quick service restaurant chain, was completed at a multiple of less than 9 times the anticipated royalty income and will help to cover the 8.6% dividend yield on the common stock. The company also has a publicly listed debenture which currently offers a yield to maturity of 7.3% which I think is very attractive as well....
Diversified Royalty Offers An 8.6% Dividend Yield And A 7.3% Bond Yield