Diversified Royalty Corp. Expands Mr. Lube + Tires Royalty Pool

Diversified Royalty Corp ( (TSE:DIV) ) has shared an announcement.

Diversified Royalty Corp. has announced adjustments to the Mr. Lube + Tires Royalty Pool, which now includes royalties from six new flagship locations and removes one closed location, bringing the total to 149 locations. This adjustment reflects the company’s strategy to enhance its revenue streams and support Mr. Lube + Tires’ growth, as evidenced by the strong performance and expansion of the franchise. The financial implications include an initial payment of $4.0 million in shares to Mr. Lube + Tires, with further adjustments based on actual sales performance. This move is expected to strengthen DIV’s market position and provide continued value to its stakeholders.

Spark’s Take on TSE:DIV Stock

According to Spark, TipRanks’ AI Analyst, TSE:DIV is a Outperform.

Diversified Royalty Corp’s strong financial health and attractive dividend yield are the primary strengths, while technical indicators are neutral. The high debt-to-equity ratio is a notable risk factor. Overall, the stock is appealing for its income potential, although investors should be mindful of leverage-related risks.

To see Spark’s full report on TSE:DIV stock, click here.

More about Diversified Royalty Corp

Diversified Royalty Corp. operates in the royalty financing industry, focusing on acquiring top-line royalties from multi-location businesses and franchisors in North America. Their primary service is providing royalty capital to businesses in exchange for a percentage of their revenue, thus allowing them to benefit from the growth of these businesses without being directly involved in operations.

YTD Price Performance: 2.48%

Average Trading Volume: 303,897

Technical Sentiment Signal: Strong Sell

Current Market Cap: C$443.1M

For detailed information about DIV stock, go to TipRanks’ Stock Analysis page.