Ralph Lauren Corporation (RL) will raise its quarterly dividend by 25 percent to $0.625 per share in 2018. This is the first dividend increase by the apparel maker since 2015.

The next quarterly dividend is payable on July 13, 2018 to shareholders of record at the close of business on June 29, 2018. The new annual dividend of $2.50 per share translates into a 1.8% yield at the current stock price of $137.86.

Ralph Lauren said it plans to return 100% of free cash flow to shareholders over the next five years, returning over $2.5 billion on a cumulative basis through Fiscal 2023 through dividends and repurchases.

In 2015 RL hiked its dividend by 11.1 percent from $0.45 to $0.50 per share with no dividend increases in 2016 and 2017. The total annual dividend payment by the company currently is about $203 million.

Ralph Lauren Corporation designs, manufactures and distributes  premium lifestyle products, including apparel, accessories, home furnishings, and other licensed product categories. The company's brand names, which include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Ralph Lauren Children, Chaps, and Club Monaco. Founded in 1967 by Mr. Ralph Lauren, the company has paid a dividend every year since 2003.