What are your thoughts on Div.to ? Currently have it in a tfsa

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Asked on November 27, 2022 7:24 pm
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DIV is a unique one in the fact it goes out and tries to acquire royalty agreements with particular businesses.

It was hit relatively hard during the pandemic, obviously, with travel coming to a halt (it has royalties in Mr Lube, an oil change business) and dining out coming to a halt (Mr Mikes).

But it has since rebounded in a pretty big way. It's done a very good job of growing royalty income over the years, and if you are looking for income, it's certainly attractive.

I wouldn't expect much more out of DIV besides the distribution. As a royalty company, it is highly unlikely to provide you with any outsized returns on the underlying shares, unless you buy at the bottom of a panic style event like the pandemic.

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Posted by Dan Kent
Answered on November 29, 2022 3:44 pm