MONTREAL, Que — It was a profitable year for TransForce Inc., and now the company’s shareholders stand to share in 2014’s success.
The company has increased its dividend payout by a significant amount. On January 15, 2015, investors will receive a 2014 Q4 dividend of $0.17 per outstanding common share. That amount is 17.2% higher than what they received for their 2014 Q3 payout, which was $0.145 per share.
According to TransForce, this increase reflects the company’s “ability to continue to generate a strong free cash flow in current and projected market conditions and reflects its stated dividend policy whereby approximately 20-25% of annualized free cash flow available would be distributed every year as dividends to shareholders. This level of distribution allows TransForce to maintain sufficient financial resources and flexibility to execute its operating and disciplined acquisition strategies, while providing an adequate return on shareholder’s capital. TransForce has increased its dividend in each of the last four years.”
TransForce did warn that a portion of the dividends will be paid out at a lower rate as they are based on the earnings of companies TransForce acquired.
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