TIA
DIV has bought Cheba Hut trademarks for $36M and has raised its dividend by 10%. Cheba will add $7M to DIV's revenue royalty stream. Cheba has 77 toasted sub sandwich restaurants in the US. We think it is a good deal, and diversifies the company's portfolio further. The more royaltieis it has the more de-risked the stock should become. The yield is attractive and has shown growth. There is small cap and economic risk here, but it is doing many of the right things to set up long term cash flow growth. However, because its dividend is so high, growth will be slower than if it kept more cash.