The Company declared shareholder dividends of $5.7 million for the Quarter, or $0.230 per share, compared to $5.1 million, or $0.2075 per share, for the prior year comparable quarter. The payout ratio is 96% for the Quarter and was 91% in the prior year, comparable quarter.
The Company declared shareholder dividends of $21.8 million for the Year, or $0.8875 per share, compared to $19.6 million, or $0.7975 per share, for the prior year comparable period. The payout ratio is 97% for the Year and was 95% in 2022.
The Company's policy is to distribute all available cash in order to maximize returns to shareholders over time, after allowing for reasonable reserves. Despite seasonal variations inherent to the restaurant industry, the Company's policy is to make equal dividend payments to shareholders on a monthly basis in order to smooth out income to shareholders.
The Company's working capital reserve is $8.2 million at December 31, 2023, which is an increase of $0.7 million in the Year due to the 96% payout ratio. System sales for the quarter ended March 31 have generally been the softest and historically results in a payout ratio over 100%. The reserve is available to stabilize dividends and fund other expenditures in the event of short- to medium-term variability in System Sales and, thus, the Company's royalty income. The Company has historically targeted a payout ratio at or near 100% on an annualized basis.