TORONTO - FirstService (NASDAQ:FSV) Corporation (NASDAQ: FSV; TSX: FSV), a North American leader in property services, announced an increase in its quarterly cash dividend on Monday. The company's Board of Directors approved an 11% rise from the previous dividend of US$0.225 per Common Share to US$0.25 per Common Share.
The new quarterly dividend will be payable on April 5, 2024, to shareholders of record as of the close of business on March 29, 2024. With this increase, the annualized dividend rate goes up to US$1.00 per share from the prior US$0.90, continuing FirstService's history of annual dividend growth exceeding 10%.
FirstService credits its growth-focused business model, which generates strong free cash flow, for enabling the increase in shareholder dividends while maintaining a conservative balance sheet. The company emphasizes that this financial strategy allows for the continuing return of capital to its shareholders.
The company, which is included in the S&P/TSX 60 Index, operates through two primary service platforms: FirstService Residential, the largest manager of residential communities in North America, and FirstService Brands, a significant provider of essential property services through franchised and company-owned operations. FirstService reports annual revenues of approximately US$4.3 billion and employs around 29,000 people across North America.
The information in this article is based on a press release.
InvestingPro Insights
As FirstService Corporation (NASDAQ: FSV; TSX: FSV) announces its dividend increase, investors may find additional insights by considering key metrics and expert analysis. According to real-time data from InvestingPro, FirstService boasts a market capitalization of $7.52 billion, reflecting its significant presence in the property services sector. The company's P/E ratio stands at 56.57, indicating a high valuation relative to earnings. However, this may be justified by its revenue growth of 19.33% over the last twelve months as of Q3 2023, showcasing its strong performance in the market.
InvestingPro Tips highlight that FirstService has raised its dividend for 9 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company is expected to continue its growth trajectory, with net income predicted to rise this year. For investors seeking deeper analysis and more InvestingPro Tips, a subscription to InvestingPro now comes with a special New Year sale, offering a discount of up to 50%. Furthermore, using the coupon code "SFY24" will provide an additional 10% off a 2-year InvestingPro+ subscription, or "SFY241" for an extra 10% off a 1-year subscription.
With 14 additional tips available on InvestingPro, including insights on the company's trading multiples and profitability, investors have a wealth of information at their fingertips to make informed decisions. FirstService's position as a prominent player in the Real Estate Management & Development industry, combined with its stable financials, paints a picture of a company that's not only growing but also managing its finances prudently.
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