Rocky Mountain Dealerships Inc. (TSX: RME) is a Calgary, Alberta-based company operating in the Agriculture and Construction segments. The company has a network of agriculture and construction equipment stores across the Canadian Prairie Provinces.
On Monday, RME announced that its Board of Directors approved a quarterly dividend of $0.115 per common share. The dividend will be payable on June 30, 2016 to shareholders of record at the close of business on May 31, 2016. RME has an excellent track record when it comes to dividend payments. Over the last five years, RME has consistently paid dividends and increased its dividends from $0.05 per share to $0.115 per share. RME currently offers a dividend yield of 6.97%.
RME also announced its financial results for the first quarter of 2016 on Monday. The company’s used equipment inventory declined by $10.9 million or 3.8% in the quarter. Total revenue for the quarter dropped 14% to $189.5 million. The company’s Agriculture segment product support revenues registered a tenth consecutive quarter of growth.
RME’s gross margin for the quarter rose to 14.9%, compared to 14.3% reported in the first quarter of 2015. RME’s gross profit for the quarter decreased by 10.1% to $28.3 million.
