Allison Transmission Holdings Inc. (ALSN) will raise its quaterly dividend by 13.3 percent to $0.15 per share in 2020. This is the first dividend increase by the company since 2014.

The next dividend will be paid on March 20, 2020 to shareholders of record on March 9, 2020. The new annual dividend rate of 68 cents per share yields 1.7% at a stock price of $40.00.

Allison Transmission Holdings is a manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Allison transmissions are used in a variety of applications including refuse, construction, fire, distribution, bus, motorhomes, defense and energy. Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. Allison has regional headquarters in the Netherlands, China and Brazil with manufacturing facilities in the U.S., Hungary and India. Allison also has independent distributor and dealer locations worldwide. The company has paid a dividend every year since 2012.