STORE Capital Corporation (STOR) will raise its quarterly dividend by 6.5 percent to $0.31 per share in 2018. This follows a 2 cent dividend hike by the REIT to $0.31 per share quarterly last year.

The next dividend will be paid on October 15, 2018 to STORE Capital stockholders of record as of the close of business on September 28, 2018. The new annual dividend yields 4.6% at a stock price of $28.96.

“We are happy to announce that we have increased our dividend by 6.5%, reflecting our outlook for continued strong growth and performance,” said Christopher H. Volk, President and Chief Executive Officer of STORE Capital. “Through a combination of external and internal growth, we have been able to generate consistently high levels of retained cash flow, allowing us to increase our dividend every year since our IPO in late 2014, while also delivering double-digit returns to our shareholders. Cumulatively, we are proud to have increased our quarterly dividend by 32%, while maintaining a payout ratio close to 70% of adjusted funds from operations.”

STORE Capital Corporation is an internally managed net-lease real estate investment trust (REIT). The company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. Its customers include restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. STORE is providing real estate financing solutions principally to middle-market and larger businesses that own STORE Properties and operate within the broad-based service, retail and manufacturing sectors of the U.S. economy. STORE has paid a dividend every year since 2014.