Dividend cut by 80%from 5 cents per month to 1 cent per month. Ouch. But they say it is a temporary cut.
Dividend Rate is Temporarily Reduced
TORONTO , Sept. 18, 2023 /CNW/ - Chesswood Group Limited (" Chesswood " or the " Company ") (TSX: CHW) today announced that a dividend in an amount of one cent ($0.01) per share has been declared for the month of September, payable on October 16, 2023 , to shareholders of record at the close of business on September 29, 2023 .
Chesswood advises that the dividend declared for the month ending September 30, 2023 will be an eligible dividend for the purposes of the Income Tax Act ( Canada ) and any similar provincial legislation.
As noted in the Company's news release announcing the dividend for August, the actions by central banks to significantly raise interest rates has affected the business climate generally and has temporarily compressed our net interest margins. As contemplated in that news release, management and our directors conducted a thorough evaluation of our portfolio performance and various interest rate scenarios on our profitability and concluded that a temporary adjustment to our dividend rate was warranted in order to proactively address this period of macroeconomic uncertainty. "This temporary measure will allow us to conserve capital and focus on various growth opportunities in the near term that will ultimately enhance long-term shareholder value," said Ryan Marr , Chesswood's President and CEO.