W. R. Grace & Co (GRA) will raise its quarterly dividend by 12.5 percent to $0.27 per share in the first quarter of 2019. This marks the 3rd year of higher dividends by the specialty chemicals company.

The next dividend is payable on March 21, 2019 to shareholders of record at the close of business on February 28, 2019. A new annualized dividend rate of $1.08 per share yields 1.4% at a stock price of $74.51.

"Grace remains committed to growing our dividend as part of our disciplined capital allocation strategy," said Hudson La Force, Grace’s President and Chief Executive Officer. "In addition to increasing our dividend for 2019, we expect to invest over $200 million in high return growth and operating excellence investments. In 2018, we returned $145 million to shareholders through dividends and share repurchases. We remain confident in our ability to generate strong free cash flow over the long term."

W.R. Grace & Co. Is a supplier of specialty chemicals and specialty materials. The company produces catalysts used in refining, petrochemical and other chemical manufacturing applications, specialty materials, coatings and sealants and related products used in coatings, consumer, industrial, pharmaceutical, and packaging applications and construction chemicals and building materials.