Recent Stock Purchase - Pizza Pizza Royalty

Here’s the update on my recent stock purchase. Today I started a new position in Pizza Pizza Royalty Corp (PZA.TO). PPRC is a royalty pool that collects 6% royalties from Pizza Pizza restaurants and 9% royalty from Pizza 73 restaurants. The stock currently pays 7% dividend and trades a little more than its book value.

I used to own PZA shares in the past but sold all my shares at around $17. I made a good profit back then and kept the stock in my watchlist in case it drops to its lows. Right now the stock trades under $13 so it’s the perfect timing to get back in the game.

I purchased 75 PZA shares at $12.36 per shares. This is my first tranche. If the stock continues to trade below $13 in the coming months, then I will buy a second tranche. Ideally, I would like to have around 250 shares of PZA in my portfolio.

This purchase should add around $5 to my monthly income which will cover two slices of pizza and a coke. Not bad!! Let me know if you are familiar with this stock and if it was a good entry point under $13.


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8 comments:

  1. PassivecanadianJune 18, 2018 at 10:03 PM

    nice german.

    great company. love their dipping sauces.
    nice to see you profit before.

    monthly income is always nice.

    keep it up.

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    1. Dividend Income StocksJune 20, 2018 at 8:59 PM

      Thanks! I hope to buy more of this pizza stock at this low price.

      Delete
  2. SpeculatorJune 19, 2018 at 9:30 AM

    PZA has not raised it's distribution in 2 years, pays 7 cents a share every month. My problem with the high yield is no raises and no capital appreciation. It also will lower the payout if and when the stock price rises. The stock has lost almost $5 in the last 52 weeks alone. No amount of distributions can keep up with that rate of capital erosion.

    I wish you well with your buy and hope the price rises along with dividends. So far, history has not been on the side of high yielders like this.

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    1. Dividend Income StocksJune 20, 2018 at 9:03 PM

      Hi Speculator, They did not raise the dividend because their payout is maxed out. I think at this price the stock is very cheap. If I can get $4-$5 upside I'll be very happy.

      Delete
  3. Dividend DiplomatsJune 19, 2018 at 2:55 PM

    DiS -

    I love Pizza and hey - if you have cash flows that covers your pizza expense, then awesome, haha. That's the next question - how would you rate their pizza?

    -Lanny

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    1. Dividend Income StocksJune 20, 2018 at 9:16 PM

      Hi Lanny! Their pizza is very good. When I want a slice I always go to pizza pizza. It's a good chain. They are renovating their restaurants to the modern look so it's more pleasant to customers. It doesn't look like those 99 cent cheap pizza places.

      Delete
  4. Matthew - AllAboutTheDividendsJuly 9, 2018 at 6:21 PM

    Nice purchase. I have owned this stock for 4 years now.

    ReplyDelete

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