CIRI’s dividend policy states that the total dividend payment to shareholders in any given year is equal to 3.50 percent of total shareholders’ equity, calculated as of December 31 of the prior year. As the first step in calculating dividend amounts, CIRI’s prior-year accounting books must be “closed,” which means all prior-year expenses and income must be received and either paid or properly accounted for. Next, the finance and accounting department prepares CIRI’s financial statements for the prior-year, after which an independent accounting firm is retained to review the statements and confirm their accuracy. This process determines CIRI’s total shareholders’ equity upon which current-year dividends will be based. Prior to the completion and audit of the financial statements, the accounting and finance department has enough information to estimate the ending shareholders’ equity balance, enabling the amounts of the first through third quarter dividends to be declared.
For 2016, the amounts of the first through third quarter dividends have been calculated and will be $8.70 per share (or $870 per 100 shares). As in the past, once the financial statements have been reviewed and confirmed, the amount of the fourth quarter dividend will be calculated. The amount of the resource revenue distribution will also be calculated at that time. Once known, the amounts will be announced and the website distribution schedule will be updated.
