TORONTO, Oct. 21, 2015 (GLOBE NEWSWIRE) -- Atrium Mortgage Investment Corporation (TSX:AI) is pleased to announce that its board of directors has approved an increase in the company's dividend policy for 2016. Commencing in January 2016, the board expects to declare a dividend at an annual rate of $0.86 per share (7.1667 cents per share per month), an increase from the annual rate in 2015 of $0.84 (7 cents per share per month).
This represents the third consecutive annual increase to the regular dividend, which has risen from $0.80 per share per annum in 2013 to $0.86 cents in 2016.
"We are very pleased to continue to increase the regular monthly dividend, as we have now done every year since listing our shares on the TSX. The increase is justified based on our payout ratio, which is the lowest in the industry, and based on the strength of our mortgage portfolio," said Mr. Robert Goodall, CEO of Atrium. He continued, "Atrium expects to also pay a special dividend to shareholders of record at December 31, 2015 to top-up the total dividends so that they equal its taxable earnings in the year. For the nine months ended September 30, 2015, we have earned $0.71 per share, and paid $0.63 in regular monthly dividends to our shareholders. The amount of the special dividend (covering all of 2015) will be announced on February 9, 2016."
Shareholders are reminded that Atrium offers a dividend reinvestment plan (DRIP) that allows them to automatically reinvest their dividends in new shares of Atrium at a 2% discount from market price and with no commissions. This provides shareholders with an easy way to realize the benefits of compound growth of their investment in Atrium. Shareholders can enroll in the DRIP program by contacting their investment advisor.
About Atrium
Canada's Premier Non-Bank Lender™
Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium's objectives are to provide its shareholders with stable and secure dividends and to preserve shareholders' equity by lending within conservative risk parameters.
Atrium is a Mortgage Investment Corporation (MIC) as defined in the Canada Income Tax Act, so is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. For further information, please refer to regulatory filings available at www.sedar.com or Atrium's website at www.atriummic.com.
Forward-Looking Statements
This news release contains forward-looking statements. This information can be identified by words such as "expect to," "will be," or similar expressions suggesting future outcomes or events. Atrium believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those anticipated. These risks include, but are not limited to, risks associated with the ability to satisfy regulatory, stock exchange and commercial closing conditions of the offering, the uncertainty associated with accessing capital markets and the risks related to Atrium's business, including those identified in Atrium's annual information form for the year ended December 31, 2014 under the heading "Risk Factors" (a copy of which may be obtained at www.sedar.com). Forward-looking statements contained in this news release are made as of the date hereof and are subject to change. All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by law, Atrium undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.