We have now received our fourth dividend from Deterra Royalties (DRR).
Although the dividend received from the company decreased this time and was only $0.12 fully franked compared to the $0.2208 received in August 2022, the company is still trading on a high dividend yield, which still makes holding the position for the long term an attractive option.
With the iron ore price on which the company receives a royalty averaging around US$120 a tonne since the start of 2023 well up on levels in September and November last year the dividend is likely to rebound. The weaker AUD/USD exchange rate is also providing a strong tailwind.
In total, we have now received $0.5728 in dividends and $0.245 in franking credits taking the yield since the position was opened to 18.8%. Based on the closing price for DRR today we have a current unrealised capital gain of 9.7%.
So, the total return is currently 28.5%. The position has been open for 19 months so the current annualised return is 18.1%.
TRADE ACTION
No trade action we will continue to hold the stop without a stop loss or profit target.
P.S we would be very tempted to exit if the share price was to trade above the $5.00 level