South American e-commerce site MercadoLibre has reported a change to its dividend policy and will now provide a fixed quarterly dividend payment in 2017 of $0.15 per share ($0.60 per share annually), subject to declaration by the Board, reports Seeking Alpha.
The trading site, often referred to as the eBay of Latin America, operates across 19 countries and offers items that range from automotive to real estate; with a range of apartments, homes and office spaces available on the website.
The company believes a fixed dividend policy will allow it to return value to investors by allocating additional capital to key initiatives intended to generate important incremental scale efficiencies for the long-term in businesses driving current growth, including logistics, Fintech and retail.
In a press release, the company stated that it is increasingly confident in its financial and capital allocation strategies, including the long-term return potential of its investments, and its key performance indicators continue to show positive results. We believe these business lines present significant market opportunities that are highly synergistic with the rest of the Company’s services.
The new dividend policy will take effect following the payment of the $0.15 per share dividend declared by the Board of Directors of the Company payable on April 17, 2017 to shareholders of record as of the close of business on March 31, 2017. The first quarterly payment is expected to be paid on July 17, 2017 to shareholders of record as of the close of business on June 30, 2017.