Valmont Industries (VMI) will hike its quarterly dividend by 20.0 percent to 45 cents per share in 2020. This is the first dividend increase by the company since 2014.

The next dividend will be payable on April 15, 2020 to shareholders of record on March 27, 2020. A new annual dividend rate of $1.80 per share yields 1.5% at a stock price of $121.

“In recognition of our strong balance sheet and confidence in our ability to generate good cash flows throughout our business cycles, we are pleased to announce a 20% increase in our quarterly dividend,” said Stephen G. Kaniewski, President and Chief Executive Officer in the company's press release today announcing the dividend hike. “In keeping with our capital allocation philosophy adopted by our Board of Directors in 2014, we aim to strike a prudent balance between returning excess capital to shareholders while upholding the ability to fund continued growth, both organically and through strategic acquisitions. We believe this dividend increase demonstrates our commitment to deliver sustained, long-term profitable growth for our shareholders.”

Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its irrigation equipment and services for large-scale agriculture improve farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service life of steel and other metal products.