Dollarama Inc. (TSX: DOL) shares have surged more than 6% in trading today after the company announced a dividend payment.
Based in Canada, DOL is an operator of dollar stores. The company operates 955 Dollarama stores in Canada. DOL provides a range of consumer products and general merchandise for daily use.
DOL announced a dividend of $0.100 per share, which will be payable on May 4, 2016. Shareholders of record as of April 22, 2016 will be eligible to receive the dividend payment. DOL has an excellent track record when it comes to making dividend payments. Although the company currently offers a very low yield, it has consistently paid dividends since 2011.
Dollarama also reported strong results for its fourth quarter earlier today. For the quarter, the company’s sales increased by 14.6% to $766.5 million. Comparable store sales for the quarter rose 7.9%. Gross margin for the quarter was 40.8%, up from 38.8% reported for the same period in the previous year. DOL’s operating income for the quarter was $176.9 million, up 25.6% on a year-over-year basis. Operating margin came in at 23.1%, up from 21.1% for the same period in the previous year. Diluted net earnings for the quarter were $1 per share, up from $0.76 per share reported in the same period last year.
