SAN DIEGO - PriceSmart Inc. (NASDAQ: NASDAQ:PSMT), an operator of membership warehouse clubs, has announced a 26% increase in its annual dividend, reflecting confidence in the company's financial health and cash generation capabilities. The new dividend rate is set at $1.16 per share, up from the previous year's dividend of $0.92 per share.
Stockholders of record as of February 15, 2024, will receive the first installment of $0.58 per share on February 29, 2024. The second installment of the same amount will be paid to stockholders of record as of August 15, 2024, with the payment date on August 30, 2024. This decision comes amid an uncertain macroeconomic landscape, and future dividends will be contingent on the board's review of the company's financial performance and capital needs.
In addition to the dividend announcement, PriceSmart's annual meeting of stockholders, held on February 1, 2024, resulted in the election of eleven nominees to its Board of Directors. These directors will serve until the next annual meeting or until successors are appointed. The stockholders also approved executive compensation for the fiscal year 2023, chose to hold advisory votes on executive compensation annually, amended the company's Certificate of Incorporation regarding officer liability, and ratified Ernst & Young, LLP as the independent registered public accounting firm for the fiscal year ending August 31, 2024.
PriceSmart, headquartered in San Diego, operates 53 warehouse clubs across 12 countries and one U.S. territory, with plans to open another in Santa Ana, El Salvador within the month. The company's model focuses on providing high-quality goods and services at low prices to its members.
The information provided is based on a press release statement from PriceSmart.
InvestingPro Insights
PriceSmart's recent announcement of a significant dividend increase is a testament to its financial resilience and commitment to shareholder returns. The InvestingPro data reinforces this narrative, indicating that the company's market capitalization stands at a robust $2.32 billion. Moreover, PriceSmart's P/E ratio, a measure of the company's valuation, is currently at 20.8, suggesting investor confidence in its earnings potential.
InvestingPro Tips highlight several key factors that could be influencing investor sentiment. Notably, management's aggressive share buyback approach reflects a strategic effort to enhance shareholder value. Furthermore, the company's ability to maintain dividend payments for 17 consecutive years underscores its financial stability and reliability as an income-generating investment.
For those looking to delve deeper into PriceSmart's financial health, InvestingPro offers additional insights. The platform lists more tips, including the company's moderate level of debt and its ability to cover interest payments with cash flows, which are indicative of a solid financial foundation.
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