Diversified Royalty Corp. Expands U.S. Portfolio with Cheba Hut Acquisition

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

Diversified Royalty Corp. has acquired the trademarks and intellectual property of Cheba Hut Franchising, Inc., marking its ninth royalty stream and second U.S.-based asset. This acquisition is expected to enhance DIV’s revenue with an initial annual royalty of US$4 million, contributing approximately 7% to its pro-forma adjusted revenue. The acquisition also prompted a 10% increase in DIV’s annual dividend, reflecting the company’s strong financial position and growth strategy. The transaction is anticipated to expand DIV’s tax pools significantly, offering potential tax benefits and reinforcing its market positioning.

The most recent analyst rating on (TSE:DIV) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Diversified Royalty Corp stock, see the TSE:DIV Stock Forecast page.

Spark’s Take on TSE:DIV Stock

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

Diversified Royalty Corp scores well due to strong financial performance and positive corporate events, which reinforce its growth strategy and shareholder value. While technical indicators are favorable, the valuation is balanced by a high dividend yield. However, financial leverage remains a concern.

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 a diverse range of businesses. The company aims to provide stable and growing cash flows by acquiring royalties from established brands across various sectors.

Average Trading Volume: 292,319

Technical Sentiment Signal: Strong Buy

Current Market Cap: C$451.4M

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