Payout rationfrom MD&A:
Payout Ratio
In the first quarter of 2021, the payout ratio was 103.1%, a decrease when compared to the payout ratio in the first quarter of 2020 of 119.2%. The decrease was primarily due to higher distributable cash and lower dividends declared, partially offset by a higher weighted average number of common shares outstanding. Due to seasonality in both AIR MILES® and Mr. Lube, the payout ratio in the first quarter is typically weaker.
Dividends declared exceeded distributable cash by $0.2 million in the first quarter of 2021. However, the Company’s dividend reinvestment plan (“DRIP”) was open for participation in the first quarter, as described under the section “Dividends to Shareholders – Dividend Reinvestment Plan”. As the dividends declared during the first quarter of 2021 were settled through a reinvestment in the Company’s shares for participants in the DRIP, the payout ratio on a cash basis was 90.3% in the first quarter of 2021 and there was no cash shortfall.
The Board approved the temporary suspension of the DRIP starting with the April 2020 monthly dividend. The DRIP was subsequently reinstated with the January 2021 monthly dividend.