Zoetis (ZTS) will raise its quarterly dividend by 20 percent to $0.126 per share in the first quarter of 2018. This follows a 10.5 percent dividend hike by the animal health company in 2016.

The dividend is to be paid on Thursday, March 1, 2018, to holders of record on Friday, January 19, 2018. The new dividend yield for ZTS is 0.7%.

“In 2017, Zoetis has continued to deliver steady, profitable growth based on our diverse portfolio, improved cost structure and ongoing investments in innovation,” said Juan Ramón Alaix, Chief Executive Officer of Zoetis. “We have been able to improve our cash flow generation based on this performance, and with the Board’s approval, I am pleased to announce that we are once again increasing our dividend - by 20% in 2018 - as part of our commitment to returning excess capital to shareholders.”

Zoetis Inc. is an animal health company. Zoetis discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products, genetic tests, biodevices and a range of services. Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals worldwide. The company, formerly a subsidiary of Pfizer, went public in 2013 and has paid a dividend ever since.