Data storage solutions provider Seagate Technology (STX) will raise its quarterly dividend by 3.1 percent in 2020. This follows last year's 3.2 percent increase to $0.65 per share. This is the second dividend increase by the provider of electronic data storage technology and solutions since 2015.

The next dividend will be payable on January 6, 2021 to shareholders of record as of the close of business on December 23, 2020. A new annual rate of $2.68 per share yields 5.1% at a stock price of $51.79.

The company will now pay an estimated annual dividend of $688 million to shareholders. However the average dividend growth rate in the last five years now drops to 1.2 percent annually. Seagate last cut its dividend in 2010, when a quarterly payment was suspended following a 93.8 percent cut in 2009.

Another large cap US technology company announcing a dividend hike recently is TTEC Holdings.

Seagate Technology is a provider of data storage technology and solutions. The company's principal products are hard disk drives, hard drives or HDDs. In addition to HDDs, Seagate produces a broad range of data storage products including solid state drives (“SSDs”), solid state hybrid drives (“SSHDs”) and storage subsystems. Seagate went public on December 11, 2002 and has paid a dividend every year since 2003.