LSC Communications, Inc. (LKSD) will raise its quarterly dividend by four percent to $0.26 per share in 2018. The company initiated a quarterly dividend two years ago in 2016 and today marks the first ever dividend increase.

The dividend is payable March 2, 2018 to stockholders of record as of the close of business on February 15, 2018. The new dividend yield for LKSD is 7.5%.

“The 4% annual dividend increase represents our ongoing commitment to balanced capital deployment and our continued ability to generate strong free cash flow,” said Thomas J. Quinlan III, LSC Communications’ Chairman and Chief Executive Officer. “Over the last year we have made several strategic acquisitions and investments to enhance our capabilities, and as we focus on the integration of these acquisitions as well as the positive cash impact from the new tax legislation, we are committed to increasing the return of capital to our shareholders.”

LSC Communications is a provider of print and digital media solutions for publishers, merchandisers and retailers worldwide. Through its Print segment LKSD provides a range of print product offerings, which include magazines, catalogs, retail inserts, books and directories. The company also provides print-related services, such as supply chain management, mail services, e-book formatting and distribution services. Its Office Products segment manufactures and sells a range of branded and private label products.