Decisive Dividend Corp V.DE.WT

Ink Research

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Morning Report: A decisive breakout for Decisive Dividend 

February 28, 2024

2023 was a decisive year for Decisive Dividend (DE). The company started trading on the TSX Venture Exchange in 2015, the year it acquired its first business. As it continued to execute on its strategy of acquiring small manufacturing companies, the stock generally traded under $4.50. It has since acquired eleven businesses, with six of those acquisitions happening over the past 18 months. The activity has helped Decisive Dividend stock to decisively breakout. Since we first featured it here on April 21st, 2023, the share price has rallied 89.8%.

The company has also been growing its dividend. When we wrote about it last spring, it was paying a monthly dividend of $0.035 per common share. At the time, that worked out to an indicated dividend yield of 7.3%. The company has since increased its dividend twice, with the latest announcement taking place on February 15th. On March 15th, the company plans to pay a March dividend of $0.045 per share to shareholders of record as of February 29th. That gives the stock a prospective annual dividend yield of 4.8% based on its February 27th close of $11.20 (it will trade ex-dividend on February 28th). When it announced Q3 2023 results on November 6th, it reported a profit of $0.33 per diluted share for the first 9 months of the year versus $0.26 per share for the same period a year earlier, a 27% improvement. There was some insider net selling in the public market last year following our report, but so far in 2024, insiders have been exercising options and not selling their newly acquired shares into the public market. Perhaps they like the dividends.