TORONTO – DH Corp. is slashing its quarterly dividend by 63 per cent starting in January while it undergoes a strategic transformation into a financial technology company.
The Toronto-based company (TSX:DH) says the dividend reduction will free up $85.5 million in cash for other purposes next year.
It expects to allocate 45 to 50 per cent of the money to stock repurchases, 40 to 45 per cent on debt reduction and the rest on growth initiatives.
DH — previously called Davis + Henderson — was at one time primarily a supplier of paper cheques, but has diversified into technology for the financial services industry.
The company said in October that its third quarter showed an accelerated decline in Canadian cheque volumes, as well as delayed technology purchase decisions by large banks outside the United States.