The Gap Inc. (GPS) will raise its quarterly dividend by 5.4 percent to $0.2425 per share in the first quarter of 2018. The dividend yield for GPS is 3.9% based on a new annual dividend of $0.97 per share. It's the first dividend hike by the company since 2015.

The increased dividend is payable on or after May 2, 2018 to shareholders of record at the close of business on April 11, 2018.

Gap Inc. is a global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands.The company's products are available for purchase in more than 90 countries worldwide through company-operated stores, franchise stores, and e-commerce sites.