Is Diversified Royalty (DIV) halal?

Diversified Royalty Corp. (TSX: DIV) is a multi-royalty holding company whose total debt is about 88.8% of market cap — about two and two-thirds times the ~33% ceiling — so it fails the debt gate: FAIL.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — no haram lines identified

Diversified Royalty Corp. is a multi-royalty corporation 'engaged in the business of acquiring topline royalties from wellmanaged multilocation businesses and franchisors in North America.' Its royalty partners include Mr. Lube + Tires, Sutton, AIR MILES (BMO Blue Rewards), Mr. Mikes, Nurse Next Door, Oxford Learning, Stratus Building Solutions, BarBurrito, and Cheba Hut; it also operates the Mr. Lube + Tires franchisor business in Canada. No haram business segments are disclosed — no banking or insurance operations, gambling, weapons, tobacco, or adult entertainment. (The filings do not break out alcohol sales at the restaurant partners, so no claim is made either way.) Factually neutral as a royalty-holding activity.

Gate two: the ratios — the debt gate fails decisively

At June 30, 2026 (Q2 2026 interim financial statements): bank loans of C$353.0 million, convertible debentures of C$110.9 million, and lease liabilities of C$175.8 million — total debt of C$639.7 million. With 176,148,000 shares outstanding at C$4.09 (September 29, 2026), market cap is about C$720.4 million, so debt-to-market-cap is about 88.8% — about two and two-thirds times the ~33% ceiling. Even counting only the interest-bearing bank loans and debentures and excluding leases entirely, the ratio is about 64.4% — the failure does not depend on lease treatment. The income gate is unverifiable and moot: interest income is not disclosed as a standalone income-statement line, so it is not scored. The company is a net interest payer. It held C$13.7 million of cash (~1.9% of market cap).

What other screeners say

None of Zoya, Musaffa, or ShariaPortfolio cover DIV — no third-party page or rating was found for the ticker, so there is nothing to cite. This screener rests entirely on the company's own Q2 2026 filings.

The bottom line

This screener gives Diversified Royalty Corp. (TSX: DIV) a FAIL. Debt of about 88.8% of market cap (about 64.4% even excluding leases) is decisively over the ~33% ceiling — on verified filing numbers, at any plausible recent share price. No haram business lines are disclosed, and the interest-income line is unverifiable in the filings — the failure is purely debt-driven. Snapshot dated September 29, 2026; re-checked quarterly after earnings.

Sources

Frequently asked questions

Is Diversified Royalty stock halal?

No — Diversified Royalty Corp. (TSX: DIV) fails the debt gate decisively. Total debt of C$639.7 million (bank loans, convertible debentures, and lease liabilities) is about 88.8% of its ~C$720.4 million market cap — about two and two-thirds times the ~33% ceiling. Even excluding lease liabilities, interest-bearing debt alone is about 64.4% of market cap. No haram business lines are disclosed, and interest income is not separately disclosed in the filings (income gate unverifiable, moot given the debt failure). None of Zoya, Musaffa, or ShariaPortfolio cover DIV. Consult a qualified scholar.

What are Diversified Royalty's debt and market-cap figures?

At June 30, 2026 (Q2 2026 interim financial statements): bank loans of C$353.0 million, convertible debentures of C$110.9 million, and lease liabilities of C$175.8 million — total debt of C$639.7 million. Market cap is about C$720.4 million (176,148,000 shares outstanding at C$4.09, September 29, 2026). Debt-to-market-cap is about 88.8%; about 64.4% even counting only the interest-bearing bank loans and debentures and excluding leases. The company held C$13.7 million of cash (~1.9% of market cap).

How much interest income does Diversified Royalty earn?

Interest income is not disclosed as a standalone income-statement line in DIV's Q2 2026 interim financial statements, so the interest-income-to-revenue ratio cannot be verified and is not scored — the debt failure is decisive on its own. For context only, the cash-flow statement reports C$315,000 of 'interest received' for the six months ended June 30, 2026. The company is a net interest payer (interest expense on its bank loans and convertible debentures far exceeds interest received).

What does Diversified Royalty Corp. do?

Diversified Royalty Corp. is a multi-royalty corporation 'engaged in the business of acquiring topline royalties from wellmanaged multilocation businesses and franchisors in North America.' Its royalty partners include Mr. Lube + Tires, Sutton, AIR MILES (BMO Blue Rewards), Mr. Mikes, Nurse Next Door, Oxford Learning, Stratus Building Solutions, BarBurrito, and Cheba Hut; it also operates the Mr. Lube + Tires franchisor business in Canada. No haram business segments are disclosed — no banking or insurance operations, gambling, weapons, tobacco, or adult entertainment (the filings do not break out alcohol sales at restaurant partners, so no claim is made either way).

What do Zoya, Musaffa, and ShariaPortfolio say about DIV?

None of the three cover DIV: Zoya has no DIV stock page, Musaffa has no coverage page for the ticker (the standard Musaffa stock URL does not resolve), and ShariaPortfolio has no published analysis. There is no third-party rating to cite for this stock — this screener rests entirely on the company's own Q2 2026 filings.