Reynolds Consumer Products (REYN) will raise its quarterly dividend by 46.7 percent to 22 cents per share. This is the first dividend hike announced by the leading consumer products company since a quarterly dividend of $0.15 per share was initiated earlier this year.

The increased dividend will be paid on August 31, 2020 to shareholders of record as of August 16, 2020. A new annualized dividend rate of 88 cents per share yields 3.0% at a stock price of $33.

The annual dividend payment to shareholders by Reynolds Consumer Products will jump from $126 million to $185 million based on the current number of shares outstanding and the $0.88 per share annual dividend rate. This compares to a current market cap of $6.9 billion for the company behind the Hefty and Presto brands.

After touching a post-IPO low of $21.61 per share, Reynold's stock price rebounded strong to a all time high of $36.00 on June 5, 2020. On August 5 the stock price lost 9.7 percent after Reynolds missed estimates for second-quarter revenue. However the stock is still up about 20 percent from its IPO price earlier this year. In its press release announcing quarterly results the company says it is facing headwinds from recent jump in commodity prices and staffing challenges due to several factors, including absences in local COVID-19 hot spots and employees' child care needs.

Reynolds Consumer Products Inc. is a consumer products company with a product portfolio including aluminum foil, disposable bakeware, trash bags, food storage bags and disposable tableware. The company produces and sells cooking products, waste & storage products and tableware. The company's flagship products include Reynolds Wrap aluminum foil, Hefty bags, and Hefty party cups. The Hefty Tableware segment sells both branded and store brand disposable plates, platters, cups and cutlery. The Presto Products segment primarily sells store brand products in four categories: food storage bags, trash bags, disposable storage containers and food wrap. Its Presto Products segment also includes its specialty business which sells re-sealable closure systems. Reynolds Consumer Products became a public company on January 31, 2020 and initiated a quarterly dividend in March 2020.