Nordson Corporation (NDSN) will raise its quarterly dividend by 2.6 percent to 39 cents per share in 2020. This follows a dividend hike of 8.6 percent to $0.38 per share in 2019 and marks the 57th consecutive annual dividend increase by the dispensing systems maker.

The next dividend is payable on September 8, 2020 to shareholders of record as of the close of business on August 25, 2020. A new annual rate of $1.56 per share yields 0.8% at a stock price of $206.

In the press release dated August 14, 2020, the company states: “Even in this dynamic macroeconomic environment, Nordson remains confident in the strong cash flows generated by the business and committed to rewarding shareholders with a consistently increasing dividend payment. For 57 consecutive years, the company has taken pride in returning a portion of our cash flow to our shareholders,” said Joseph Kelley, executive vice president and chief financial officer.

Nordson has a great year with its stock price up more than 25 percent year-to-date, resulting in a current market cap of almost $12 billion. The company pays approximately $90 million in dividends to shareholders annually.

This year's dividend hike is the smallest since 2008, when Nordson did not announce a dividend increase. The 5 year average dividend growth now drops to 10.2 percent with double digit dividend increases announced by Nordson in 2016, 2017 and 2018. Last year the company did not hike its dividend by double digits with a 8.6 percent increase, marking 56 consecutive years of higher dividends paid to shareholders.

In the press release Nordson mentions that, with this increase, Nordson’s fiscal year 2020 represents its 57th consecutive year of annual dividend increases, ranking Nordson 14th among an elite group of publicly traded companies with the longest-running record of consecutive dividend increases.

Nordson Corporation is a manufacturer of products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. Nordson serves consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing.  The company's products are marketed through a network of direct operations in more than 35 countries. Principal manufacturing facilities are located in the United States, the People’s Republic of China, Germany, Ireland, Israel, Mexico, the Netherlands, Thailand, and the United Kingdom. Nordson was incorporated in 1954 and is headquartered in Westlake, Ohio.