Pulse to pay dividend after 20-year drought
Pulse Investments Limited has declared a dividend for the first in more than two decades. The company will pay six cents per share to stockholders on January 29, 2016.
The model agency last paid a five cent per share dividend in December 1994, according to Jamaica Stock Exchange data.
"The interim dividend payment comes on the heels of the
company's continued improvement in its financial performance, recorded in the first quarter of the 2016 financial year ended September 30, 2015," executive chairman, Kingsley Cooper, told Wednesday Business.
The total payout in January will amount to $16.3 million, more than three-quarters of which will flow to Cooper.
The company over the years has reinvested its profits in real estate development and other lines of business, even as it sought to pay down debt. However, Cooper signalled earlier this year that Pulse was weighing a distribution to shareholders.
Having completed its latest real estate project, a 9,000 square feet of function space at its Villa Ronai Spa and Suites, the executive chairman said income from these ventures will feed into future dividend payments.
"The real estate now means that, consistent with our strategy going forward, we will have more cash income coining into the business. We are also seeing an increase in the function business, so that expansion of the cash revenues is going to augur well for future dividend payments," Cooper said.
Pulse is also moving ahead with its next big project a set of town houses and suites on a section of the nine-acre property. The town houses and suites won't be rolled out on a set timeline, but will be tackled as capital becomes available, the company said.
Pulse ended its September 2015 first quarter with $54.7 million in profits and a reduction in bank debt to $16 million. In the mid-1990s, Pulse's bank debt was in excess of $300 million.