Sanderson Farms (SAFM) wil increase its quarterly dividend by 37.5 percent to 44 cents per share in 2020. This is the first time since since 2017 that a higher dividend is announced. The dividend yield for poultry processing company Sanderson Farms is 1.5%.

The last time Sanderson hiked its dividend was in 2017 with a 33.3 percent hike to $0.32 per share. Also a $1.00 per share special cash dividend was announced three years ago. The next dividend is payable October 20, 2020, to stockholders of record on October 6, 2020.

From the company's press release dated September 24, 2020: Commenting on the announcement, Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc., said, “The Board’s decision today demonstrates confidence in our growth strategy and confirms our unwavering commitment to enhancing shareholder value. Importantly, our strong balance sheet and financial strength have provided an opportunity to increase the quarterly cash dividend and return additional funds to our shareholders. At the same time, we are well positioned to continue to manage our operations in a challenging environment and respond to the opportunities ahead for Sanderson Farms.”

Sanderson will now pay an annual dividend of $39 million to its shareholders. In the last 10 years the company has announced five dividend hikes, with no less than four double digit increases.

Sanderson Farms, Inc. is a poultry processing company. The company is engaged in the production, processing, marketing and distribution of fresh, frozen and minimally prepared chicken. It sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, under the Sanderson Farms brand name to retailers, distributors, casual dining operators, customers reselling frozen chicken into export markets. The company has been paying a dividend to shareholders every year since at least 1990.