Dividends will continue to be paid monthly
BARRIE, ON, Sept. 14, 2011 /PRNewswire/ - Student Transportation Inc. ("STI") (TSX: STB; NASDAQ: STB), North America's third-largest provider of school bus transportation services, announced that the Board of Directors has continued its practice of approving the announcement of dividends quarterly. Dividends will continue to be paid on a monthly basis to shareholders of record.
STI will pay a regular monthly cash dividend of C$0.04636833 per common share on October 17, November 15 and December 15, 2011 to shareholders of record at the close of business on September 30, October 31 and November 30, 2011.
STI designates these dividends to be "eligible dividends" pursuant to subsection 89(14) of the Income Tax Act ( Canada) and its equivalent in any provinces of Canada. These dividends should be considered "qualified dividends" from a US tax perspective under Section 1(h)(11) of the Internal Revenue Code of 1986, as amended, subject to the shareholder meeting the holding period requirement to claim the qualified dividend treatment.Denis J Gallagher, Chairman & CEO of the company said, "The Board and I believe that it is in the best interests of the Company's shareholders to continue to pay an attractive dividend as we have approved for 83 consecutive months since our IPO in December 2004. We will be reporting our fiscal 2011 year end results next Thursday which are in line with internal and our independent analyst expectations. We are off to another strong year in fiscal 2012 with over 12% year over year growth booked to date and with many more solid opportunities in the queue. We have remained disciplined in our approach and will continue to do so. The dividends we pay represent a commitment to our shareholders who value simple businesses with consistent results despite market volatility." The company recently completed its dual listing on the NASDAQ under the same STB symbol as on the TSX. Gallagher added, "We are confident US investors will appreciate the growth and dividends we are bringing and we are working with several US investment bank analysts to increase coverage of the company to a greater audience."