Shoppers at Rona in Brossard, Que.Christinne Muschi
Hardware retailer Rona Inc. has announced a semi-annual dividend of 7 cents per share, saying its confident about its future growth despite current economic conditions.
The dividend is payable on March 25, Rona said Wednesday.
"The commencement of a dividend policy at Rona clearly illustrates how confident we are with the execution of our strategic plan no matter the temporary slowdown in our industry," chief executive officer Robert Dutton said in a statement.
Based on Rona's closing share price of $13.50 on Dec. 7, the dividend represents about a 1 per cent yield on an annualized basis, the Montreal-area company said.
"While our top priority for our free cash flow has been to reinvest in long-term value-creating growth strategies, we believe it is the right time to recognize our shareholders' ongoing commitment to the company and institute a regular dividend consistent with our objectives to maximize value for our shareholders while maintaining an investment grade credit profile," Mr. Dutton said in a news release.
Rona is the largest Canadian distributor and retailer of hardware, renovation and gardening products.
Its 700 stores employ more than 29,000 employees across Canada and generate in excess of $6-billion on annual sales.