©Reuters.
Diego – price smart Inc. (NASDAQ: NASDAQ:), which operates membership warehouse clubs, announced a 26% increase in its annual dividend, reflecting confidence in the company's financial health and ability to generate cash. The new dividend rate is set at $1.16 per share, up from the previous year's dividend of $0.92 per share.
Shareholders listed on the shareholder registry as of February 15, 2024 will receive an initial dividend of $0.58 per share on February 29, 2024. The second installment of the same amount is recorded in the shareholder register as of August 15, 2024 and will be paid as of the payment date. The decision was taken in an uncertain macroeconomic environment and future dividends are subject to the board's review of the company's financial performance and capital needs.
In addition to the dividend announcement, PriceSmart's annual general meeting held on February 1, 2024 elected 11 nominees to the company's Board of Directors. These directors serve until the next annual general meeting or until their successors are appointed. Stockholders also approved executive compensation for fiscal year 2023, elected to hold an annual advisory vote on executive compensation, amended the company's certificate of incorporation regarding executive liability, and appointed Ernst & Young LLP as an independent registered public accounting firm for fiscal year 2023. Approved as a place. Ends August 31, 2024.
San Diego-based PriceSmart operates 53 warehouse clubs in 12 countries and one U.S. territory, and plans to open another warehouse club in Santa Ana, El Salvador, later this month. The company's model focuses on providing members with high quality products and services at low prices.
The information provided is based on PriceSmart's press release statement.
Investment Pro Insights
PriceSmart's recent announcement of a significant dividend increase is a testament to the company's financial resilience and commitment to shareholder returns. InvestingPro's data reinforces this story, showing the company's market cap at a solid $2.32 billion. Additionally, PriceSmart's P/E, a metric for the company's valuation, currently stands at 20.8x, suggesting investors' confidence in the company's earnings potential.
InvestingPro Tips covers some important factors that can influence investor sentiment. In particular, management's aggressive share repurchase approach reflects a strategic effort to increase shareholder value. Additionally, the company's ability to maintain its dividend for 17 consecutive years supports its financial stability and reliability as an income-producing investment.
For those looking to learn more about PriceSmart's financial health, InvestingPro provides additional insight. The platform lists other hints of strong financial fundamentals, including the company's modest level of debt and ability to cover interest payments with cash flow.
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