Dividend Cut #3 of 2020

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Hey guys, I received another cut yesterday that I wanted to share with you. After markets closed Diversified Royalty Corp (ticker: DIV) provided a business update in regards to the impact COVID-19 is having on the business. If my math is correct in this update they said they were going to reduce the dividend by 17%. This news doesn’t surprise me with this company as some of companies they own are small, I think of Sutton and Mr. Mikes in particular. Sutton deals with the real estate market and Mr. Mikes is a steakhouse restaurant chain.

The company currently pays a monthly dividend of $0.01958 ($0.2350 annualized basis) and that is going to be cut too $0.01667 ($0.20 annualized basis). Even with this cut the company is expecting the payout ratio to be over 100% for most if not all of 2020.

This cut won’t have a big impact on my income as I currently own 228 shares and with this news I will be losing $7.98 this year. Since I have a tiny holding of DIV within my portfolio I will hang onto the stock and see what happens.

Thanks

Matthew

6 thoughts on “Dividend Cut #3 of 2020

  1. That’s a bummer, but it will be over at some point in time.

    I own a lot of Apple Hospitality Reit and they cut the dividend completely. I’m not going to sell, just going to ride it out. Investing is a form of gambling but haven’t actually lost any money. It’s called unrealized lose for a reason.

    Anyway, happy investing.

    Liked by 1 person

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