Waste collection company Republic Services (RSG) will raise its quarterly dividend by 4.9 percent to 42.5 cents per share in 2020. Last year the company hiked its dividend by 8.0 percent to $0.405 per share, marking 16 consecutive years of dividend increases.

The next quarterly dividend of $0.425 per share will be paid on October 15, 2020, to shareholders of record on October 1, 2020. A new annual rate of $1.70 per share yields 1.9% at a stock price of $89.

In the company's press release dated July 29, Republic Services announces the dividend hike and explains the increase: "We are raising the dividend by 5 percent which demonstrates the strength of our cash flow and commitment to efficiently return cash to shareholders," said Donald W. Slager, chief executive officer. "The annual dividend per share has increased 16 consecutive years, which reflects the consistency of our capital allocation practice and resiliency of our business."

Republic Services now pays an estimated $541 million in dividends to shareholders annually. The average 5 year dividend growth rate is 7.2 percent when this latest increase is included. The last time RSG hiked its dividend by double digits was in 2013, when a 10.6 percent increase was announced.

Republic Services, Inc. is a U.S. provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. Apart from collection operations RSG also operates transfer stations, landfills, recycling processing centers, treatment, recovery and disposal facilities and salt water disposal wells. Republic Services is engaged in landfill gas-to-energy and renewable energy projects and has post-closure responsibility for closed landfills. RSG was incorporated in Delaware in 1996 and has paid a dividend since 2003. The company has operations in the United States and Puerto Rico.