Investors interested in the dividends offered by Pet Valu Holdings (TSX:PET) Ltd. should mark their calendars, as the company has announced key dates for its dividend payments. To be eligible for the upcoming dividend, shareholders must own shares before November 29th, with the payout scheduled for December 15th.
The firm recently declared a forthcoming dividend of CA$0.10 per share, amounting to an annual total of CA$0.40 per share. This declaration comes amid an average annual earnings decline of approximately 16%. However, the dividends are being supported by robust free cash flow generation and profits, which have resulted in a conservative payout ratio. This suggests that while there is an implied risk of dividend cuts if profitability cannot be sustained, the current dividends are maintainable.
Interestingly, over the past two years, Pet Valu Holdings has seen a significant increase in its dividends, averaging around 216% annually. This substantial rise comes in contrast to the company's falling earnings but indicates a strategic decision to prioritize cash flow over profit comparison in maintaining payouts. This strategy is evident from the stock's ex-dividend information and reflects the company's commitment to rewarding its shareholders despite financial headwinds.
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