Clarke Inc. (TSX: CKI) is a Halifax, Canada-based investment holding company. CKI operates through the investment segment in a diversified group of business, operating principally in Canada.
CKI shares have edged higher in trading today bucking the trend in the broader market. At last check, CKI shares were trading 1.19% higher at $11.03 on volume of 117,050, which is more than 10 time the daily average volume of 9,300.
CKI shares are gaining momentum in trading today after the company announced a special dividend and also adopted a new dividend policy. CKI had introduced a quarterly dividend of $0.06 per share back in August 2012. The dividend was subsequently raised to $0.08 per share and then $0.10 per share.
CKI noted that in the past it made dividend payments through internally generated cash flows, but in recent quarters, the company has elected to deploy capital in several investments that do not generate recurring cash flow. The company has also elected to retain a considerable amount of capital in the form of cash pending more attractive investment opportunities. As a result, CKI has decided to cease paying a regular quarterly dividend.
CKI’s Board of Directors though declared a special dividend in the amount of $2 per share, which will be payable on June 27th, 2016 to shareholders of record at the end of business on June 16, 2016.
