Crown corporation assures that the dividends will not affect its operational capital
The Canada Mortgage and Housing Corporation has declared dividends of $995 million to the government of Canada, its shareholder.
On March 24, CMHC’s board of directors announced the approval of dividend payments of $250 million from the Crown corporation’s mortgage insurance business and $145 million from its mortgage funding activities.
Also approved was a special dividend of $600 million from mortgage insurance.
The dividends are to be paid to the federal government no later than April 30. CMHC offered assurances that the payouts will not affect its operational capital.
“The dividend strikes the right balance between returning some excess capital to the government of Canada and retaining sufficient capital to protect against economic factors that could impact our business,” CMHC said.
“Strong risk management and financial stewardship come from making choices. By returning some excess capital to our shareholder, we enable the government of Canada to use the funds to support Canadians where it is needed most.”