- Photo by Markus Spiske on Pexels.com
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
All About The Dividends 
Once this is over Sutton and Mikes will get back to business. If DIV falls bellow a dollar that will be an opportunity of a lifetime 🙂
LikeLiked by 1 person
It will be interesting to see if the stock falls on this news?
LikeLike
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.
LikeLiked by 1 person
Hey Mark sorry to hear about the Reit cutting it’s dividend on you. Hopefully once the world gets past the pandemic the dividend will be reinstated.
LikeLike
It’s a REIT, once they are making a profit again 90 percent has to by paid to the share holders. It will all work it’s self out in the long game.
LikeLiked by 2 people
[…] more. We’ve already seen big cuts. Mathew at All About The Dividends recently reported on his third dividend cut. That post looked at Diversified Royalty Corp. That followed Inter Pipeline that reduced their […]
LikeLike