Temple Hotels cuts monthly dividend by 44%
Temple Hotels (TSX: TSH) will lower its monthly dividend from $0.045 to $0.025 per share.
The new annual dividend of $0.30 per share gives the stock an indicated dividend yield of 9.4% based on the closing price of January 12th.
Temple believes that it is prudent at this time to reduce the dividend "payout" ratio to maintain strong levels of financial flexibility as management executes the 2015 business plan. The reduction in the dividend is consistent with Temple's strategy of ensuring long-term value through accretive acquisitions and capital improvements. The annualized dividend of $0.30 per share represents a dividend yield of approximately 9.4% based on the closing price of Temple's common shares on the Toronto Stock Exchange on January 12, 2015 of $3.19.
Eligible shareholders have the opportunity to reinvest their dividends in accordance with Temple's Dividend Reinvestment and Share Purchase Plan. Additional details can be found in the investor information section of Temple's website, www.templehotels.ca/drip.asp.
The dividend is designated as an "eligible" dividend under the Income Tax Act (Canada) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits which reduce income tax otherwise payable.
Temple is a real estate investment company listed on the Toronto Stock Exchange under the symbols TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets.
Source: www.templehotels.ca
The new annual dividend of $0.30 per share gives the stock an indicated dividend yield of 9.4% based on the closing price of January 12th.
Temple believes that it is prudent at this time to reduce the dividend "payout" ratio to maintain strong levels of financial flexibility as management executes the 2015 business plan. The reduction in the dividend is consistent with Temple's strategy of ensuring long-term value through accretive acquisitions and capital improvements. The annualized dividend of $0.30 per share represents a dividend yield of approximately 9.4% based on the closing price of Temple's common shares on the Toronto Stock Exchange on January 12, 2015 of $3.19.
Eligible shareholders have the opportunity to reinvest their dividends in accordance with Temple's Dividend Reinvestment and Share Purchase Plan. Additional details can be found in the investor information section of Temple's website, www.templehotels.ca/drip.asp.
The dividend is designated as an "eligible" dividend under the Income Tax Act (Canada) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits which reduce income tax otherwise payable.
Temple is a real estate investment company listed on the Toronto Stock Exchange under the symbols TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets.
Source: www.templehotels.ca
