PriceSmart announces board re-elections and dividend plans

PriceSmart Inc. (NASDAQ:PSMT) held its Annual Meeting of Stockholders on February 6, 2025, where all board nominees were re-elected, and key proposals were approved, including an amendment to the company’s equity incentive plan and the ratification of Ernst & Young LLP as the independent auditor for the fiscal year ending August 31, 2025.

During the virtual meeting, shareholders voted on several key items. The election of directors saw all board nominees receive a plurality of the votes, ensuring their re-election. Additionally, shareholders approved, on an advisory basis, the compensation of the company’s named executive officers for the fiscal year 2024. The company’s strong governance is reflected in its financial performance, with revenue growing at 10.7% and maintaining healthy profit margins.

A significant development was the approval of an amendment to PriceSmart’s Amended and Restated 2013 Equity Incentive Award Plan. This amendment increases the number of shares available for the grant of awards by 750,000 shares. The details of this amendment were outlined in the proxy statement filed on December 18, 2024.

Furthermore, the company’s board of directors declared an annual cash dividend of $1.26 per share, representing a 26% year-over-year increase. The dividend is scheduled to be paid in two installments: the first half on February 28, 2025, to stockholders of record as of February 18, 2025, and the second half on August 29, 2025, to stockholders of record as of August 15, 2025. PriceSmart has maintained dividend payments for 18 consecutive years and has raised its dividend for 3 consecutive years. The company anticipates continuing the payment of annual dividends in subsequent periods, although future dividends will depend on the company’s financial performance and capital requirements, with consideration for the prevailing economic conditions. InvestingPro subscribers can access detailed dividend analysis and 8 additional key insights about PriceSmart’s financial health and growth prospects.

The company’s commitment to shareholder returns is evident, yet its future dividend declarations remain subject to the discretion of the board of directors. This information is based on a press release statement.

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