Home Capital boosts dividend as Q3 profit soars

Wed Nov 4, 7:33 AM
The Canadian Press

By The Canadian Press

TORONTO - Mortgage lender Home Capital Group Inc. (TSX: HCG.TO) is raising its quarterly dividend for the third time this year following a big jump in quarterly profit amid rising revenue.

The company said Wednesday its dividend will increase to 16 cents per share per quarter, or the equivalent of 64 cents on an annualized basis.

The quarterly dividend is up a penny a share from the previous quarter and up three cents from the beginning of the year when it was 13 cents per share.

The July-September quarter expanded on the strong year-to-year double-digit profit growth that Home Capital has been experiencing.

Third-quarter net income rose to $38.2 million or $1.11 in the third quarter, up from $27.9 million or 81 cents a year earlier.

Revenue grew to $125.3 million, up seven per cent from $116.95 million in third quarter of 2008.