Leaf tobacco supplier Universal Corporation (UVV) will raise its quarterly dividend by 1.3 percent to $0.77 per share in 2020, matching last year's dividend hike. The company has now raised its dividend 50 consecutive years.
 

The next dividend is payable on August 3, 2020, to common shareholders of record at the close of business on July 13, 2020. A new annual rate of $3.08 per share yields 7% at a stock price of $44.35.
 

Universal has a great track record in terms of dividends, but is nevertheless not known as a true dividend growth stock. In recent years, the dividend has been increased by approximately 2%, with the exception of 2018, when there was a one-off increase of 36.4%. The dividend has increased by 1.3% in the last two years, which is the smallest increase in recent years.
 

In the company's press release announcing the dividend hike on May 27, 2020, George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation noted, "Today's dividend increase is a milestone for our company.  It is our 50th consecutive annual dividend increase, and we are very proud of this achievement.  It represents the continuation of our strong record of returning value to our shareholders through our consistent dividend delivery.  We have raised our common dividend every year since 1971."
 

On an annual basis, Universal Corp. now pays $ 76 million in dividends to its shareholders. The leaf tobacco company also purchases a small percentage of its own shares every year. Last year, the number of shares outstanding decreased by 0.5% and according to our information, Universal has so far repurchased some 0.7% of its own shares in 2020, which is in view of the 20% fall in the New York Stock Exchange is not unwise of course. Investors only lost more in 2014 with their investment in Universal, which lost 19.5% at the time, which does not include the dividend. Last year Universal's stock price rose by 5.4%. The dividend has increased on average by 4.9% in the last 10 years and by an average of 7.8% in the last 5 years, which is of course due to the very large increase in 2018.
 

Universal Corporation sources, processes, and supplies agri-products and basically is a leaf tobacco supplier. The company is engaged in procuring, financing, processing, packing, storing and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. Headquartered in Richmond, Virginia, Universal Corporation operates in more than 30 countries spanning five continents. The company has raised its common dividend every year since 1971.