Recent Purchase: Alaris Royalty (TSE: AD)
On January 15th, I purchased 60 shares of Alaris Royalty (TSE: AD) at $22.00, with a trading cost of $6.95 for a total investment of $1, 326.95. This is the second time I purchased shares in AD, I previously bought 60 shares in November at $24.80. I’ve doubled my position in AD, and reduced my average share purchase price to $23.40 a share. My new shares of AD have increased my 12-month forward dividend income by $97.20. This puts my 12-month forward dividend income at $1,221.36… And you know what that means? The Dividend Beginner now earns an average monthly dividend income of $101.78! Finally, I’ve surpassed the average of $100 a month in dividend income. This is an incredible milestone and I am very pleased with myself.
According to CIBC Investor’s Edge:
Alaris Royalty Corp. (Alaris) is a Canadian company that provides alternative financing to a range of private businesses in North America. The Company earns its revenues by providing capital to private businesses (Private Company Partner). Alaris provides long-term equity capital to companies for whom traditional private equity capital or debt is not typically available or attractive, namely, privately held companies whose owners want to retain long-term control of their businesses. The Company has around 12 Private Company Partners, such as LifeMark Health Limited Partnership, LMS Limited Partnership, End of the Roll Carpet & Vinyl, KMH Cardiology Limited Partnership, Solowave Design LP, Labstat International LP, Agility Health LLC, SCR Mining and Tunnelling L.P., Sequel Youth and Family Services LLC, S.M. Group International LP/Le Groupe S.M. International S.E.C., Kimco Holdings LLC and PF Growth Partners LLC.
Here’s some more information about all of their partners from the Alaris Royalty web site; they disclose the industry of the partner, capital invested, and the resulting distribution provided in return.
Why I invested in Alaris Royalty
- Alaris Royalty currently sports a dividend yield of 7.63%
- Pays out distributions monthly (I now receive $16.20 a month)
- Double-digit 5-year dividend growth rate of 12.72%
- Increased dividend ten times since April 2010
- Distributions that the corporation receives from their partners are paid in priority to other equity holders
- They are paid distributions monthly and receive monthly cash returns rather than having to rely on an exit for returns
- Their long-term goal is to have no single revenue stream accounting for more than 10% of their total revenue
- Thomson Reuters predicts a 12-month mean price target of $34.50, which represents a 57.18% upside
- Thomson Reuters predicts a 12-month low price target of $32.00, which represents a 45.79% upside
- Thomson Reuters analysts recommendations: 1 Strong Buy, 8 Buy, 0 Hold / Reduce / Sell
- Trailing twelve months revenue growth of 50.17%
- 2016 forecasted revenue growth: 58.7% (9 analysts)
- Very high profit margin of 69.18%
- Trailing P/E of 14.8 puts the stock at a 37% discount relative to it’s 5-yr average trailing P/E of 23.5
- Forward P/E of 13.0 puts the stock at a 38% discount relative to it’s 5-yr average forward P/E of 21.2
- They consider themselves to provide the optimal dividend stream