Div drop to .025 - (.30 per year) Its times like these that I wish I had better connections with the insiders.
Sales are up but margins are thin and the company is spending money on equipment and renos, should have reconzied the signs as well. Luckily I sold off a third earlier this month and may look at avg'ing down.
DEC 12, 2012 - 17:33 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 12, 2012) - Coast Wholesale Appliances Inc. (TSX:CWA) (Coast or the company) today announced that it will not be declaring a cash dividend for the month of December 2012. In addition, the company announced that, beginning with the January 2013 dividend expected to be declared on or about January 16th, it will reduce the amount of its monthly cash dividend to $0.025 per share from the $0.035 per share declared through November 2012. The new dividend rate equates to $0.30 per share on an annualized basis. At recent Coast share trading prices, this represents a yield of approximately 8% per annum.
"The Board has determined that it is prudent to reduce Coast's rate of shareholder dividends in light of ongoing financial performance and the company's current and future business needs," said Donald J.A. Smith, CA, MBA, a director of Coast and interim Chairman of the Board. "We have reviewed operating budgets for the coming year and are confident that the new dividend level is sustainable."
Coast's monthly cash dividends are paid to shareholders on or about the fifth day of the month following declaration. The company's Board will continue to regularly review Coast's level of dividends relative to both its financial performance, and its current and anticipated future business needs.
Coast is a leading independent supplier of major household appliances and accessories to developers and builders of multi-family and single-family housing, and to retail customers. Founded in 1978, Coast currently operates 16 stores, with 15 locations across the four western provinces and one store in the Greater Toronto Area.