05:08:00 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Rona Inc
Symbol RON
Shares Issued 107,958,260
Close 2015-04-09 C$ 16.85
Market Cap C$ 1,819,096,681
Recent Sedar Documents

Post says Rona share buyback points to dividend hike

2015-04-10 09:14 ET - In the News

The Financial Post reports in its Friday edition Rona bought back eight million shares between Nov. 18, 2014, and March 31, 2015, of its planned 9.2 million shares -- and the program is not due to end until Nov. 17, 2015. The Post's Jonathan Ratner, writing in Trading Desk, says as a result, Keith Howlett at Desjardins thinks there is a good chance Rona will increase its semi-annual dividend this year from its current seven cents. Mr. Howlett also increased his earnings per share estimates to 92 cents from 90 cents in 2015, and to $1.02 from $1 in 2016, to reflect the pace and volume of Rona's buybacks. "Rona is expressing a high level of confidence in its business by aggressively repurchasing its own shares," Mr. Howlett told clients. He also pointed out that established home improvement retailers typically pay out somewhere between 30 and 50 per cent of their earnings in dividends. The analyst suggested a quarterly dividend of four cents, or 16 cents annually, up from 14 cents currently, and figures the company's May 12 annual meeting is a likely time for management to raise it. The analyst boosted his price target on the stock to $18.50 from $16 and continues to rate it a buy.

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