Source: The Canadian Press

DundeeWealth Inc. (TSX:DW) stock was at its highest level in more than a year Friday after the company announced it will hike the dividends it pays annually by 114% following strong profit and revenue growth in the third quarter.

DundeeWealth shares rose at much as $1.17 or about 7% to a morning high of $18.49, a new 52-week high for the stock.

The company’s third-quarter net income also more than doubled to $26.4 million or 18 cents per share, up from $12.9 million or nine cents per share in the comparable period of 2009.

Revenue at the mutual fund and wealth management company rose by 17% to $223 million during the quarter, compared with $191 million a year earlier.

Revenue from management fees accounted for $140 million of the total, up from $109.5 million in the third quarter of 2009 and up from $134.8 million in the second quarter of 2010, DundeeWealth said in Friday’s announcement.

Assets under management increased to $42.3 billion, from $33.6 million, while assets under administration rose less dramatically to $26.6 million from $24.9 million in the third quarter of 2009.

DundeeWealth said it will begin paying dividends on a monthly basis, rather than quarter, starting with 5¢ per common and special share beginning on December 1.

“We have overcome unprecedented challenges over the last three years, while at the same time streamlining our business, adding efficiencies and strengthening our higher margin revenue generating activities,” said president and chief executive officer David Goodman.

“With a strong balance sheet and continuing confidence in the future earnings potential of our company, it is a pleasure to continue to reward shareholders in the form of a higher dividend rate.”