DH Corporation Announces Reallocation of Capital and Reduction in Dividend to Further itself as a Leading Fintech Company

- November 21st, 2016

DH Corporation (TSX:DH), a leading provider of technology solutions to domestic and global financial institutions, announced today that its Board of Directors has determined to reduce the quarterly dividend from $0.32 per share to $0.12 per share, effective January 1, 2017, which is consistent with the ongoing strategic transformation of D+H into a leading FinTech … Continued

DH Corporation (TSX:DH), a leading provider of technology solutions to domestic and global financial institutions, announced today that its Board of Directors has determined to reduce the quarterly dividend from $0.32 per share to $0.12 per share, effective January 1, 2017, which is consistent with the ongoing strategic transformation of D+H into a leading FinTech company. The reduction will allow for more company finances to repurchase stocks, alleviate debt and further business expansion.
As quoted in the press release:

Since going public in 2001, D+H has paid in excess of $1.1 billion in dividends and distributions to its owners. Including the dividend payable on December 30, 2016, the Company will have paid approximately $124 million in cash dividends to shareholders in 2016.
Cash totaling approximately $85.5 million is anticipated to be available in 2017 through the dividend reduction. The Company currently expects to allocate approximately 45 – 50% towards repurchasing shares, approximately 40 – 45% towards reducing debt and the remaining towards investing in ongoing organic growth initiatives in payments and lending.
“Over the last several years, D+H has been executing on its strategic transformation into a global financial technology provider. The decision we announced today is consistent with that direction and enables us to position our capital structure to support this continued evolution,” said Gerrard Schmid, Chief Executive Officer of D+H.  “We are taking a deliberate and thoughtful approach to our capital allocation program and believe it is important that our capital structure reflect the go-forward requirements of the Company.  We believe the decision to reduce our dividend at this time is in the best interest of the Company, and will support our shareholder value and growth objectives by providing additional capital to repurchase shares, reduce debt, and invest in the Company. As we pursue our strategic objectives, our entire organization remains focused on providing our customers with the high-quality solutions they have come to expect from D+H as a leading financial technology provider.”

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