Diversified Royalty Locks In BMO-Backed AIR MILES Royalties Under Amended License Deal

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

Diversified Royalty Corp. has amended its AIR MILES license agreements through subsidiary AM Royalties Limited Partnership, locking in a 10-year fixed annual royalty of $3.925 million, paid quarterly and escalating 2.42% annually from 2027, with payments now guaranteed by Bank of Montreal. The revised terms, negotiated as BMO shifts from the AIR MILES Reward Program to a new loyalty offering, materially improve economics for DIV by boosting annual AIR MILES royalty income by more than 20%, reversing years of erosion, and potentially generating about $43.8 million over the next decade; from 2032, DIV gains flexibility to monetize the AIR MILES trademarks elsewhere, while Air Miles may buy out the remaining license term and acquire related program intellectual property, reshaping the risk-return profile of what had been the company’s weakest-performing royalty asset.

The most recent analyst rating on (TSE:DIV) stock is a Buy with a C$4.50 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 Neutral.

The score is driven primarily by mixed financial performance: strong profitability and growth but meaningfully constrained by negative/volatile free cash flow and rising leverage. Technicals are supportive with price above major moving averages and positive MACD, while valuation is helped by a high dividend yield but tempered by a mid-range P/E.

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

More about Diversified Royalty Corp

Diversified Royalty Corp. is a Canadian multi-royalty company that acquires top-line royalties from well-managed, multi-location businesses and franchisors across North America, aiming for predictable and growing royalty streams. Its portfolio of trademarks and associated royalties spans automotive services (Mr. Lube + Tires), residential real estate brokerage (Sutton), casual dining (Mr. Mikes), home care (Nurse Next Door), supplemental education (Oxford Learning Centres), commercial cleaning (Stratus Building Solutions), quick-service and fast-casual restaurants (BarBurrito and Cheba Hut), and the AIR MILES loyalty program, with a stated goal of growing cash flow per share and supporting stable, potentially increasing dividends.

Average Trading Volume: 245,140

Technical Sentiment Signal: Buy

Current Market Cap: C$601.7M

For an in-depth examination of DIV stock, go to TipRanks’ Overview page.