Savaria Boosts Shareholder Returns with New Dividend Increase

Savaria Declares an Increase in Monthly Dividend Payment

Savaria Corporation is making positive strides in its financial journey by announcing an increase in its monthly dividend. This notable decision, reflecting the company’s strong financial performance in recent periods, marks a significant moment for its shareholders. The Board of Directors recently approved the elevation of the monthly dividend to 4.5 cents ($0.045) per common share, culminating in an annual dividend of 54 cents ($0.54). This represents an increase of 3.85%, or two cents ($0.02) over previous dividends.

A Reflection on Financial Growth

The announcement comes after Savaria's robust financial achievements in 2023 and the first half of 2024. Marcel Bourassa, Executive Chairman of Savaria, expressed his enthusiasm about this development, stating, "We are proud to have been a TSX Canadian Dividend Aristocrat stock since February 3, 2020.” The increase marks the first dividend boost since 2022, showcasing the company’s recovery and commitment to returning value to shareholders.

Understanding Savaria's Mission in the Accessibility Industry

Savaria Corporation (TSX: SIS) has established itself as a global leader in the accessibility market. The company is driven by its mission to provide innovative solutions that enhance the mobility, comfort, and independence of individuals with physical challenges. Their extensive product lineup includes stairlifts for both straight and curved stairs, as well as a variety of wheelchair lifts and elevators for residential and commercial applications.

Expanding Product Range

In addition to mobility solutions, Savaria also manufactures and markets medical equipment designed to ensure the safe handling of patients. This includes pressure management products targeted at the medical sector, medical beds for long-term care, and ceiling lifts that facilitate patient transfers. The company's commitment to improving accessibility is reflected in their comprehensive offerings.

A Global Presence

The corporation has a wide-reaching sales network, operating through a combination of dealers across North America and Europe, as well as direct sales offices in Australia and China. Employing approximately 2,400 staff globally, Savaria maintains manufacturing plants in Canada, the United States, Mexico, Europe, and China, contributing to its capacity to deliver high-quality accessibility solutions.

Commitment to Shareholders

With the recent decision to increase the monthly dividend, Savaria demonstrates its ongoing commitment to delivering shareholder value. Investors can look forward to receiving the higher dividends as of October 9, 2024, which will be payable to shareholders recorded as of September 30, 2024. Being an eligible dividend under the Canadian Income Tax Act adds an attractive feature to this announcement.

Conclusion

This announcement from Savaria signals not just a recovery but a potential growth trajectory for the company moving forward. With its ongoing commitment to innovation in accessibility solutions and a strong focus on shareholder returns, Savaria Corporation is poised for continued success in the coming years. Stakeholders can eagerly anticipate the impact of these developments on the company’s market position and reputation in the industry.

Frequently Asked Questions

What is Savaria Corporation known for?

Savaria Corporation is a leader in providing accessibility solutions for individuals with physical challenges, promoting comfort and independence.

What is the new monthly dividend declared by Savaria?

The Board approved an increase to the monthly dividend to 4.5 cents ($0.045) per common share.

When will the increased dividends take effect?

The increased dividends will be payable starting on October 9, 2024.

Who can receive the dividends?

Shareholders of record as of September 30, 2024, will be eligible to receive the increased dividends.

What products does Savaria manufacture?

Savaria manufactures a variety of accessibility products, including stairlifts, wheelchair lifts, medical beds, and related equipment for safe patient handling.

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