Expect a dividend cutPretty clear what's coming:
TORONTO, Aug. 22, 2023 /CNW/ - Chesswood Group Limited ("Chesswood" or the "Company") (TSX: CHW) today announced that a dividend in an amount of five cents($0.05) per share has been declared for the month of August, payable on September 15, 2023, to shareholders of record at the close of business on August 31, 2023.
Chesswood advises that the dividend declared for the month ending August 31, 2023 will be eligible dividends for the purpo ses of the Income Tax Act (Canada) and any similar provincial legislation.
The actions by central banks to significantly raise interest rates since Q1 2022 has affected the general business climate and levels of economic activity. Similar to many other specialty finance companies, Chesswood's increased cost of funding has temporally compressed Chesswood's net interest margins, as discussed in our financial reporting. On the other hand, these challenges to our industry may also provide competitive opportunities to stronger, more tenured players such as our companies.
Management and our directors continue to evaluate portfolio performance and various interest rate scenarios on our profitability. These evaluations may result in a determination in the near term that a temporary adjustment to our dividend rate is appropriate to address this period of macroeconomic uncertainty and to conserve capital as we focus on both growth opportunities a nd long-term shareholder value.