Laurentian Bank Acquired for $40.50 per Share Amid Ongoing Dividend Payments

Laurentian Bank is being acquired by Fairstone Bank of Canada for C$40.50 per share in cash, while National Bank of Canada separately acquires its retail operations.

The bank's quarterly dividend remains at C$0.47 a share, or C$1.88 annually, but this yield is secondary to the acquisition process.

This situation presents income investors with an unusual case: a company that continues to pay dividends while being taken over.

The payout ratio far exceeds trailing earnings due to depressed earnings during the takeover period, not a sustainable income stream.