Salada Foods Jamaica Limited is writing a new dividend policy, and will, after more than two decades, pay a dividend to its 525 shareholders, starting in financial year 2009/2010.

The coffee processing company is now controlled by Donovan Lewis, through his companies Three Bears and the Ideal Group.

Salada has long been profitable, but saw its best years in 2007 when profits almost doubled to $68.6 million; and in 2008 when it hit a new record of $75 million net profit retained from $394 million of sales.

Its net worth, assets in excess of liabilities, has also grown to $358 million.

One shareholder said no dividend had been paid for 21 years.

"We have now to contrive a dividend policy and we are going to start paying dividends," said chairman John Bell

"We hope to pay an annual dividend, we have not decided on the amount yet."

The Salada stock, which split 10 to 1 last November, is now trading at $8.80 per share.

Before the split, which was effected to create liquidity for the stock, Salada was trading at about $120.

Bell said at the company's annual general meeting last week that the decision to pay a dividend was due to the company's profitability.

"The company is now profitable, has been quite profitable for a few years, so we have a good cash build-up and the share price is doing well," he said.

"So most people who invest in the company would have seen some capital appreciation and we believe that it is time for the shareholders to see some cash appreciation; and they have been asking for it."

dionne.rose@gleanerjm.com