DIV is a multi-royalty corporation engaged in the business of acquiring royalties from well-managed multi-location businesses and franchisors in North America (“Royalty Partners”). DIV believes that its royalty structure provides a strong incentive for a Royalty Partner to continue growing its business while retaining control of its business. DIV’s primary objectives are to: (i) purchase stable and growing royalty streams from Royalty Partners; and (ii) increase distributable cash per Share by making accretive royalty purchases. These objectives, if achieved, will allow DIV to pay a monthly dividend to Shareholders, while increasing the dividend as distributable cash flow per share allows. DIV’s common shares and convertible debentures trade on the TSX under the symbols “DIV” and “DIV.DB”, respectively.
DIV is currently paying an annual dividend of $0.23 per common share. As part of its strategy, DIV typically purchases the trademarks of the companies it negotiates royalty agreements with. DIV’s typical royalty structure allows its Royalty Partners the benefit of:
- maintaining full operational control of their business;
- participating meaningfully in the growth of their company; and
- tax deductibility of royalty payments.
DIV’s strategy typically includes having a General Security Agreement over the Royalty Partners’ business to protect DIV’s interests.
DIV owns the trademarks and has a top line royalty from five of Canada’s leading businesses.