Duke Royalty (LON: DUKE) is unique in the UK, although its royalty model is well known in North America. Duke’s royalty income-based model provides cash generation and an attractive yield.
Duke has the finance to grow the business and companies are becoming more aware of the attractions of royalty-based finance rather than bringing in private equity backers or floating on the stockmarket.
An interim dividend of 0.75p a share has been declared and the shares go ex-dividend on 24 December. This is for the second quarter and first quarter dividend was also 0.75p a share – it was 0.7p a share for each of the quarters in the previous financial year.
This means that this year’s full year dividend could be 2.95p a share. That provides a 6.3% yield at the current share price of 47.7p.