Dividend investors searching for yield in today’s rising interest rate environment certainly have their work cut out for them, due to the range of options available in domestic and international markets.
In this article, I’m going to discuss one company which provides investors with a higher than normal yield in a field which has been plagued by a number of problems in recent years.
With a dividend yield of 7.8%, Alaris Royalty Corp. (TSX:AD) is a Canada based investor of capital into private companies with the investment objective of generating and returning cash flows to investors.
As a royalty company, Alaris’ primary focus is on returning as much capital to shareholders as possible, something the company has done well in the past and is positioned well to continue to do in the future.
A number of anlaysts have pointed to Alaris being a relatively secure value opportunity, given the fact the company has resolved a number of issues with specific companies within the business’ royalty portfolio in recent years, positioning Alaris well for growth in 2018.
Alaris continues to invest capital in new ventures, as highlighted by a recent investment in Sales Benchmark Index, LLC of $85 million U.S., an investment which supports a bullish long-term outlook for the company given it is the largest of its kind in the company’s history.
With cash flows that are expected to grow underpinning a yield which is hard to match, Alaris is a company which can be picked up at an attractive valuation, currently hovering near its 52-week low.
Invest wisely, my friends.
