Leaf tobacco supplier Universal Corporation (UVV) will raise its quarterly dividend by 36.4 percent to $0.75 per share in the second quarter of 2018.

The next dividend will be payable August 06, 2018, to common shareholders of record at the close of business on July 9, 2018.  The new dividend yield for UVV is 4.8%.

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation, said, "We have devoted considerable time to analyzing our business, as well as the market environment, to determine how we can create a strategy that capitalizes on our core competencies to ensure we are well positioned for the future. Through this review, we have reaffirmed that our mission is to remain the leading global leaf tobacco supplier. By continuing to make disciplined investments within our core business and taking advantage of growth opportunities in tobacco as well as in adjacent industries and markets that utilize our assets and capabilities, we will be able to deliver enhanced value for all shareholders through earnings growth and the generation of free cash flow despite operating in a mature industry.

Mr. Freeman continued, "We are confident in our continued ability to generate strong free cash flow. Our focus on strengthening our balance sheet in recent years has positioned us to enhance our capital allocation strategy and we will continually evaluate opportunities to return capital to shareholders on an ongoing basis. At the same time, we remain committed to maintaining our investment grade credit rating and extending our 47-year history of dividend increases."

Universal Corporation is a leaf tobacco supplier. The Company is engaged in procuring, financing, processing, packing, storing and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. Headquartered in Richmond, Virginia, Universal Corporation operates in more than 30 countries spanning five continents.