PriceSmart Boosts Dividend 11% Amid Aggressive Caribbean Expansion

SAN DIEGO, CA – February 06, 2026 – PriceSmart, Inc. (NASDAQ: PSMT) delivered a powerful message of confidence to investors Friday, announcing an 11.1% increase to its annual cash dividend. The move, which follows a period of robust financial performance, coincides with the unanimous re-election of its board and an ambitious plan to expand its retail footprint in Latin America and the Caribbean.

Investors reacted favorably to the news, sending the company's stock up $5.51 to close at $156.81, just shy of its 52-week high. The dividend increase, raising the annual payout from $1.26 to $1.40 per share, was described by the company's Board of Directors as a reflection of their confidence in PriceSmart's financial strength and cash-generating activities.

Following its annual meeting of stockholders on February 5, the company confirmed the new dividend will be paid in two semi-annual installments of $0.70 per share. The first payment is scheduled for February 27, 2026, for stockholders of record as of February 17, with the second to follow on August 31, 2026. This marks the 19th consecutive year the company has maintained its dividend payments.

A Dividend Built on Financial Strength

The double-digit dividend hike is underpinned by solid financial results that showcase consistent growth. For its first quarter of fiscal year 2026, which ended November 30, 2025, PriceSmart reported a 9.9% increase in total revenues, reaching $1.38 billion. Net income for the quarter climbed to $40.2 million, or $1.29 per diluted share, up from $37.4 million in the same period a year prior.

This performance continues a trend of steady growth, with total revenues for the full fiscal year 2025 increasing by 7.2% to $5.27 billion. The company's financial health is further supported by a strong balance sheet, featuring a low debt-to-equity ratio of 0.11 and a healthy dividend payout ratio of just 21.2%. This low payout ratio suggests that the increased dividend is not only sustainable but also leaves ample capital for reinvestment into the business.

While the market's immediate reaction was positive, some analysts remain cautious, with a consensus target price of $139.14 suggesting the stock may be fully valued after its recent run-up. Technical indicators like the Relative Strength Index (RSI) hovering around 74 also point to the stock being in potentially overbought territory. However, the company's strong institutional ownership of 88% indicates a solid base of long-term support from major financial players.

Solidifying a Regional Retail Empire

Beyond rewarding shareholders, PriceSmart is channeling its financial strength into strategic expansion. The company detailed plans to open four new warehouse clubs during 2026, which will increase its total operational count from 56 to 60 clubs across Latin America, the Caribbean, and a U.S. territory.

The planned openings demonstrate a focused strategy to deepen its penetration in key markets:
* La Romana, Dominican Republic: A new club is set to open in the spring, marking the company's sixth location in the country.
* Jamaica: The island nation will see two new clubs, one in Montego Bay in the summer and another on South Camp Road in Kingston during the fall/winter, bringing Jamaica's total to four.
* Ciudad Quesada, Costa Rica: Scheduled for a fall opening, this will be PriceSmart's tenth club in Costa Rica, one of its most established markets.

This expansion solidifies PriceSmart's unique position as the primary U.S.-style membership warehouse club operator in its core regions. While large retailers like Walmart operate in Central America, they do so with a different, non-membership model. PriceSmart's strategy of bringing the bulk-purchasing, low-price model popularized by Costco to emerging markets with a growing middle class and cost-conscious consumers continues to prove effective.

Navigating Opportunity and Risk in Emerging Markets

PriceSmart’s bullish outlook and expansionary moves are being made against a complex macroeconomic backdrop. The company's business model is well-suited for regions where consumers are increasingly seeking value, a trend amplified by global inflationary pressures. By offering high-quality merchandise in bulk, it appeals directly to households and small businesses looking to manage their budgets effectively.

However, operating across 12 countries and a U.S. territory comes with inherent risks, which the company acknowledges. In its announcement, PriceSmart noted that future dividend decisions would consider "uncertain macroeconomic conditions." These risks include political instability, natural disasters, and, most notably, volatility in currency exchange rates. The company has previously faced challenges with the illiquidity of local currencies, particularly in Trinidad and Honduras, where converting cash back to U.S. dollars has been difficult. The presence of $80.2 million in Trinidadian currency that is not readily convertible remains a point of caution for investors.

Despite these headwinds, the decision to both increase the dividend and commit significant capital to new stores underscores management's deep confidence in its operational capabilities and the long-term potential of its chosen markets.

Unanimous Support Signals Stable Governance

Further bolstering this confident posture are the results from the company's annual meeting. Stockholders voted to re-elect all eleven of the Board's nominees, including company founders Robert and David Price. This unanimous endorsement signals strong shareholder alignment with the current leadership and strategic direction. The board's stability provides a solid foundation for executing the company's ambitious growth plans.

In addition to the director elections, stockholders approved, on an advisory basis, the compensation for named executive officers and ratified the selection of Ernst & Young LLP as the company's independent accounting firm for the upcoming fiscal year. These routine but crucial approvals passed without issue, indicating a smoothly functioning corporate governance structure that allows management to focus on operations and expansion.

With a clear mandate from shareholders, a fortified balance sheet, and a well-defined growth path, PriceSmart is positioning itself not just as a survivor in the challenging world of international retail, but as a dominant and expanding force in its niche. The upcoming club openings, particularly the one that will bring the company to the 60-club milestone, will be watched closely as a barometer of its continued success in the region.