The distribution was raised from 9c to 9.5c in October 2022, and it also paid a special distribution of 5c at year end 2022. 12-month operating cash flow is $11.4M, and dividends were $11M, so payout ratio is very close to 100%. But, the company's target is 100% and it does not need much capital to run its business (other than capital raised to buy royalties). The company's small size and economic sensitivity do add risk, so we would certainly see the dividend as higher-risk income generally. Note it did stop dividends for more than a year during the pandemic, and then restarted them at a lower rate. EPS is expected to be decent, but lower, this year. The main catalysts are corporate actions (new royalties) so these are hard to predict in terms of timing/materiality. The valuation is quite decent here, and we would be OK buying as 'part' of a higher risk income allocation.
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