PriceSmart, Inc. (NASDAQ: PSMT) increased its annual cash dividend by 11.1%, raising the payout from $1.26 to $1.40 per share. The dividend will be paid in two equal installments of $0.70 each, with the first payment due on February 27, 2026 and the second on August 31, 2026. Shareholders of record as of February 17, 2026 will receive the first installment, and those of record as of August 17, 2026 will receive the second.
The dividend hike follows a strong earnings season. In the first quarter of 2026, PriceSmart reported total revenue of $1.38 billion, up 9.9% from $1.26 billion in Q1 2025, and net income of $40.2 million, up 7.3% from $37.4 million a year earlier. Earnings per share reached $1.29, compared with $1.21 in Q1 2025, but fell short of the consensus estimate of $1.44. The miss was driven by a modest revenue shortfall and higher operating expenses, even as the company maintained strong margin discipline.
In the fourth quarter of 2025, PriceSmart posted revenue of $1.33 billion, an 8.6% year‑over‑year increase, and net income of $40.2 million, up 8.5% from the prior year. Earnings per share were $1.02 versus the analyst estimate of $1.08. The EPS miss was attributed to higher cost of goods sold and a one‑time charge, offset by a solid revenue beat that reflected continued demand in core markets.
The Board’s decision to raise the dividend signals confidence in the company’s cash‑generating capacity. PriceSmart’s cash flow has remained robust, supported by a current ratio of 1.33 and a debt‑to‑equity ratio of 0.25. Gross margin stands at 17.42%, and the firm is expanding its footprint with plans to open four new warehouse clubs by the end of 2026, bringing the total to 60 clubs across 12 countries and one U.S. territory.
CEO David Price highlighted the drivers behind the strong results, noting “membership growth, solid sales performance, and operational discipline” as key contributors. He emphasized that the dividend increase reflects the company’s commitment to returning value to shareholders while maintaining flexibility for future investments in technology and expansion.
The dividend increase is a positive signal for investors, underscoring PriceSmart’s solid financial health and its ability to sustain shareholder returns amid ongoing growth initiatives.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.