EDMONTON, Feb. 14, 2014 /PRNewswire/ - AutoCanada Inc. ("AutoCanada") (TSX:ACQ) today announced that its Board of Directors has declared a quarterly eligible dividend of $0.22 per common share, an increase of 4.8% from the previous quarterly dividend of $0.21 per common share. The dividend is payable on March 17, 2014 to shareholders of record at the close of business on February 28, 2014. The declared dividend represents a rate of $0.88 per share on an annualized basis.
"The Company is pleased to continue to raise the dividend on a quarterly basis for the past twelve consecutive quarters. The Canadian automotive retail, service, and financing environment continues to be strong and the dividend increase reflects our continued confidence in the market." stated Pat Priestner, Chief Executive Officer of AutoCanada.
Eligible dividend designation
For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) (the "ITA") and any corresponding provincial and territorial tax legislation, all dividends paid by AutoCanada or any of its subsidiaries in 2010 and thereafter are designated as "eligible dividends" (as defined in 89(1) of the ITA), unless otherwise indicated. Please consult with your own tax advisor for advice with respect to the income tax consequences to you of AutoCanada Inc. designating dividends as "eligible dividends".
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 32 franchised dealerships in six provinces and has over 1,500 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, and Volkswagen branded vehicles. In 2012, our dealerships sold approximately 30,000 vehicles and processed approximately 309,000 service and collision repair orders in our 333 service bays during that time.
SOURCE AutoCanada Inc.