Canadian retailer Dollarama (DOL) has raised its quarterly dividend payment by 30% as it reports better-than-expected financial results for the fourth quarter of 2023.
The Montreal-based chain of dollar stores said that, going forward, it will pay a quarterly dividend of 9.2 cents per share, up 30% from 7.08 cents a share previously.
The dividend hike comes as Dollarama reported that it earned $1.15 a share in the final quarter of last year. The result was up 26% from a profit of $0.91 per share a year earlier.
Revenue in the quarter totalled $1.64 billion, up 12% from $1.47 billion a year earlier.
Comparable store sales rose 8.7% and the number of transactions rose 11.2% as Canadians turn to dollar stores more with consumer prices elevated.
However, Dollarama said that its average transaction size during the quarter fell 2.2%.
Dollarama’s dividend increase brings the yield on its stock closer to 1%.
Over the last 12 months, the stock of Dollarama has risen 23% to trade at $100.36 per share.
