Home Depot (HD) will raise its quarterly dividend by 10.3 percent to $1.50 per share in the first quarter of 2020. This marks the 11th consecutive year of annual dividend increases by the world's largest home improvement retailer.

The next dividend is payable on March 26, 2020, to shareholders of record on the close of business on March 12, 2020. The new annual dividend rate of $6.00 per share yields 2.5% at a stock price of $236.

"As a testament to our commitment to create value for our shareholders and a demonstration of confidence in the business going forward, the board has increased the dividend for the eleventh consecutive year," said Richard McPhail, CFO and executive vice president in today's press release announcing the company's fourth quarter and fiscal 2019 results.

Dow member Home Depot is one of the biggest dividend payers in the United States with an estimated annual dividend payment of $6.45 billion.The company has announced a double digit dividend hike in each of the last eight years. The biggest dividend hikes were announced by Home Depot in 2013 (+34.5 pct) and 2019 (+32.0 pct). The average annual dividend growth in the last five years is a whopping 20.5 percent.

The Home Depot, Inc. is a home improvement retailer. The company sells building materials, home improvement products, lawn and garden products, décor products and provides home improvement installation services and tool and equipment rental. The Home Depot stores are located throughout the U.S., including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam, Canada, and Mexico. Home Depot serves two primary customer groups: do-it-yourself (DIY) Customers and Professional Customers (Pros). One of the company's biggest competitors is Dividend Aristocrat Lowe's Companies. Home Depot has paid a dividend to shareholders every year since at least 1987 and currently is not a Dividend Aristocrat.