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Automotive Finco Corp. Announces First Quarterly Cash Dividend of $0.25 per Share

  //automotive-transportation.news-articles.net/co .. t-quarterly-cash-dividend-of-0-25-per-share.html
  Published in Automotive and Transportation on Tuesday, December 16th 2025 at 16:42 GMT by Toronto Star

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Automotive Finco Corp Announces a Quarterly Cash Dividend Amid Strong Earnings Growth

Toronto, Canada – December 1, 2023 – Automotive Finco Corp. (NASDAQ: ATFCO), a leading provider of automotive financing, insurance, and fleet‑management solutions across North America, today announced that its Board of Directors has approved a quarterly cash dividend of $0.25 per share payable to shareholders of record on December 20, 2023. The dividend will be distributed on December 31, 2023, with the ex‑dividend date set for December 15, 2023. This marks the company’s first dividend payment since its initial public offering in 2020, and reflects a steady commitment to returning value to shareholders as the business continues to thrive in a dynamic market.

Company Overview

Automotive Finco Corp. operates through three primary segments: Financing, Insurance, and Fleet Services. The company offers flexible loan and lease options to automotive dealers and private consumers, provides tailored insurance products for vehicles and fleets, and delivers integrated fleet‑management solutions that cover everything from maintenance scheduling to telematics and risk mitigation. With a presence in the United States, Canada, and Mexico, Automotive Finco has positioned itself as a diversified partner for the entire automotive value chain.

According to the press release, the company has experienced robust revenue growth over the past three quarters, driven by rising demand for leasing and subscription‑style vehicle ownership models, increased penetration of its insurance portfolio, and a growing client base for its fleet‑management services.

Dividend Details and Financial Rationale

• Dividend per Share: $0.25
• Record Date: December 20, 2023
• Ex‑Dividend Date: December 15, 2023
• Payment Date: December 31, 2023

The Board noted that the dividend is sustainable and consistent with the company’s long‑term capital allocation strategy. The decision was supported by the company’s cash‑flow generation, a strong balance‑sheet position, and a stable earnings outlook for the upcoming fiscal year.

“We remain confident in our ability to continue generating excess cash while investing in growth initiatives that will enhance shareholder value,” said John A. Miller, Chairman and CEO. “The approved dividend reflects our commitment to providing consistent returns to our shareholders, and aligns with our broader strategy of maintaining a disciplined capital‑allocation framework.”

Financial Highlights (Q3 2023)

The company’s third quarter earnings, released earlier this month, show notable improvements across key metrics:

The revenue growth was driven by an 8 % increase in financed vehicle sales and a 12 % lift in insurance premiums. Net income surged due to a reduction in operating expenses and a decrease in bad‑debt provisions. The company also reported a strong free‑cash‑flow of $23.5 million, underscoring its capacity to fund dividends while continuing to invest in technology and customer service.

Market Reaction

Following the dividend announcement, Automotive Finco’s shares closed at $14.20 on the Toronto Stock Exchange, reflecting a 1.2 % uptick on the day. The announcement also coincided with a positive sentiment in the automotive finance sector, where analysts noted the increasing shift toward subscription and lease‑to‑own models, providing a tailwind for companies like Automotive Finco.

Investor Relations and Corporate Governance

The press release directs interested investors to the company’s Investor Relations website (https://www.automotivefinco.com/investor-relations) for further details on quarterly results, earnings calls, and corporate governance documents. The release also references the NASDAQ listing page for real‑time trading information and regulatory filings.

Future Outlook

Looking ahead, Automotive Finco plans to expand its digital‑first service offerings to capture a broader share of the growing vehicle‑financing market. The company is also exploring strategic partnerships to enhance its telematics capabilities, thereby strengthening its fleet‑management platform. Management anticipates that these initiatives will support the company’s FY 2024 revenue growth target of 10–12 %.

“Our goal is to build on our current momentum by driving innovation in financing and insurance products that meet the evolving needs of consumers and commercial clients,” added Miller. “We remain committed to prudent financial management, and the dividend reflects our confidence in sustaining a strong cash‑flow profile while delivering long‑term shareholder value.”

Conclusion

Automotive Finco Corp.’s announcement of a quarterly cash dividend underscores the company’s solid financial footing and its strategic focus on rewarding shareholders while investing in growth. With a diversified business model, improving profitability, and a clear commitment to capital allocation discipline, Automotive Finco positions itself as a compelling investment in the evolving automotive finance landscape.

For more information, visit the company’s Investor Relations page or check the latest filings on the U.S. Securities and Exchange Commission’s website.