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Introduction & Market Context
Decisive Dividend Corporation (TSX.V:DE) presented its May 2025 investor update highlighting record first-quarter performance, continued acquisition-driven growth, and an attractive dividend yield. The presentation, dated May 7, 2025, showcases the company’s "Buy, Build, Hold" strategy that has delivered approximately 657% total return (~22% annualized) since inception.
The small-cap diversified manufacturing acquirer continues to capitalize on a significant demographic trend: aging business owners looking to exit. According to the presentation, 76% of business owners plan to exit within the next 10 years, representing approximately $2 trillion in business assets.
As shown in the company’s performance chart, Decisive Dividend has significantly outperformed relevant market indices:
Quarterly Performance Highlights
Decisive Dividend reported its strongest first quarter in company history for Q1 2025, with revenue reaching $39.2 million, a 33% increase from $29.4 million in Q1 2024. Adjusted EBITDA per share jumped to $0.35, compared to $0.21 in the same period last year, representing a 67% increase.
The company’s Q1 2025 results dashboard illustrates this strong performance across key metrics:
Gross profit margin remained stable at 38% year-over-year, while free cash flow per share doubled from $0.10 in Q1 2024 to $0.20 in Q1 2025. Profit per share also improved significantly to $0.05 from $0.01 in the prior year period.
The company noted that consolidated order levels in early 2025 have outpaced the same periods in both 2023 and 2024, with more balanced contributions from across the group. Decisive exited Q1 2025 with 60% higher backlogs than at the end of Q1 2024, and Q2 2025 order levels continue to outpace both Q2 2024 and Q2 2023.
Growth Strategy & Acquisitions
Decisive Dividend’s growth strategy centers on acquiring profitable, well-established manufacturing companies with enterprise values up to $25 million. The company maintains acquisition multiple discipline in the historical range of 3.5x-5.5x adjusted EBITDA and targets a long-term leverage ratio of 50% equity to 50% debt.
The company’s "Buy, Build, Hold" philosophy is clearly illustrated in their strategic framework:
Since its first acquisition in February 2015, Decisive has completed 13 acquisitions, with 8 of those occurring in just a 24-month span to April 2024. This acquisition strategy has driven impressive growth, with revenue increasing at a 25% CAGR from 2015 to 2024.
The company’s portfolio is now well-diversified both geographically and by product type, providing resilience against market fluctuations:
Dividend Performance & Shareholder Returns
One of Decisive Dividend’s key value propositions is its attractive dividend yield, currently at 8.5% based on the May 6, 2025 share price. The company pays a monthly dividend of $0.045 per share and has distributed cumulative dividends of $40.5 million since 2015.
The following chart illustrates the company’s growing dividend payments over time:
The company maintains a Q1 2025 trailing twelve-month dividend payout ratio of 82%, suggesting the current dividend level is sustainable. Decisive has increased its monthly dividend each year since the beginning of 2022.
The company’s overall financial performance is summarized in its growth and yield metrics:
Corporate Overview & Financial Position
As of May 6, 2025, Decisive Dividend had a market capitalization of approximately $126 million based on 19.8 million basic shares outstanding and a share price of $6.40. Insiders own approximately 10.8% of the company.
The company’s financial snapshot provides additional context on its current position:
Decisive maintains strong liquidity with $41.0 million in cash on hand and available credit. The company’s net debt stands at $59.2 million, with committed facilities of $100 million and an available accordion of $75 million.
Forward-Looking Statements
Looking ahead, Decisive Dividend appears well-positioned for continued growth. The company’s strong acquisition pipeline continues to expand, with near-term focus on acquisitions that reduce exposure to potential headwinds from current U.S. trade policy.
Management noted that Decisive is currently somewhat insulated from the direct impact of tariffs, as substantially all products manufactured by the group and sold into the U.S. are compliant with the Canada-United States-Mexico Agreement.
The company expects continued strong performance in Q2 2025, supported by higher order backlogs, operational initiatives, new product introductions, and strategic acquisition opportunities. With its diversified portfolio of manufacturing businesses, attractive dividend yield, and proven acquisition strategy, Decisive Dividend aims to continue delivering outsized returns to shareholders in the coming years.
Full presentation:
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