MONTREAL -- Dollarama Inc. raised its dividend as it reported its fourth-quarter profit climbed to $162.8 million compared with $146.1 million a year earlier.

The retailer says it will now pay a quarterly dividend of 12 cents per share, up a penny from its earlier payment to shareholders.  It also plans to split its shares on a three-for-one basis, subject to the approval of shareholders.

The dividend increase and stock split were announced as Dollarama reported its profit amounted to $1.45 per diluted share for the quarter ended Jan. 28 compared with $1.24 per diluted share a year earlier.

Sales totalled $938.1 million, up from $854.5 million, boosted by comparable store sales growth of 5.5 per cent.

Dollarama also announced that lead director Stephen Gunn will be appointed chairman of the board replacing Dollarama founder Larry Rossy, following the company's annual meeting in June. Rossy, who is not standing for re-election as a director, will be named chairman emeritus.

Kristin Williams Mugford has been appointed as an independent director effective immediately.