Canadian food retailer Dollarama Inc. raised its quarterly dividend by 9% to 12 Canadian cents per share as it reported a fourth-quarter profit that beat analysts' expectations, the company said March 29.
Dollarama will pay the dividend on May 2 to shareholders as of record April 20.
The company's board also proposed a three-for-one stock split, to be voted on by shareholders on June 7. Subject to its approval, Dollarama will issue the diluted shares around June 19 to shareholders as of record June 14.
Dollarama, which plans to expand its Quebec-based distribution center by 50% to 500,000 square feet, raised its capex guidance for fiscal 2019 ending Jan. 31, 2019, to a range of C$150 million to C$160 million from a prior forecast of C$110 million to C$120 million.
Net earnings for the fourth quarter ended Jan. 28 was C$162.8 million, or C$1.45 per share, up from the C$146.1 million, or C$1.24 per share, the company posted in the same period in 2017. That is above the mean EPS consensus estimate of C$1.40 for the quarter, according to S&P Capital IQ. Quarterly sales rose 9.8% to C$938.1 million, compared with C$854.5 million a year earlier.