EDMONTON – Automobile dealership group AutoCanada Inc. (TSX:ACQ) is doubling its annual dividend on strong financial results and a new dividend policy.
On Wednesday, the company announced that its new annual dividend is 40 cents per share, up from 20 cents per share.
A quarterly dividend of 10 cents per share will be paid Sept. 15 to shareholders of record on Aug. 31.
In a statement, the company said strong financial results during the year so far have allowed AutoCanada to increase the dividend.
AutoCanada’s interim first quarter financial statements indicate earnings per share of 10 cents, up from seven cents a year prior.
The company said it changed its dividend after an independent board review led to a revised dividend policy, which will target quarterly dividends between 70 per cent and 80 per cent of earnings per share.
The dividend policy will be reviewed on a quarterly basis and could be adjusted.
AutoCanada is one of Canada’s largest multi-location automobile dealership groups, currently operating 23 franchised dealerships in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova Scotia.