McGrath RentCorp (MGRC) will raise its quarterly dividend by 12.0 percent to $0.42 per share in the first quarter of 2020. This marks the 29th consecutive year of annual dividend increases by the rental company.

The next dividend is payable on April 30, 2020 to all shareholders of record on April 15, 2020. A new annual rate of $1.68 per share yields 2.3% at a stock price of $72.50. McGrath RentCorp has raised its dividend by double digits for three consecutive years now.

The dividend hike was announced in the company's press release dated February 25, 2020, reporting fourth quarter 2019 results. McGrath RentCorp reported an increase of 8% year-over-year to $92.2 million in rental revenues with income from operations growing 9% year-over-year to $38.2 million. The company's adjusted EBITDA increased by 11% year-over-year to $63.7 million.

If we include this latest dividend hike McGrath RentCorp will pay an annual dividend amount of $41 million to shareholders. The average annual dividend growth rate in the last five years jumps to 10.9 percent for this dividend hike star.

McGrath RentCorp is a diversified business-to-business rental company. McGrath RentCorp operates through five divisions: Mobile Modular, Mobile Modular Portable Storage, TRS-RenTelco, Adler Tanks and Enviroplex.The company’s Mobile Modular division rents and sells modular buildings to fulfill customers’ temporary and permanent classroom and office space needs. The company’s TRS-RenTelco division rents and sells electronic test equipment and the company’s Adler Tank Rentals subsidiary rents and sells containment solutions for hazardous and nonhazardous liquids and solids. McGrath RentCorp has paid a dividend to shareholders every year since 1990.