Dividend Aristocrat Cintas Corporation (CTAS) will raise its annual dividend by 10.2 percent to $2.81 per share in 2020. The company also announced that it will start paying a quarterly dividend. Last year Cintas hiked its dividend by 24.4 percent to $2.55 per share, marking the 37th consecutive year of dividend increases. This December Cintas will pay a total dividend of $3.51 per share.

The next dividend (the annual payment of $2.81 and a first quarterly dividend of 70 cents) is payable on December 4, 2020 to shareholders of record as of November 6, 2020. The annual dividend of $2.81 per share yields 0.9% at a stock price of $315.54. 

In a press release dated October 27, 2020, announcing this dividend hike, Scott D. Farmer, Cintas’ Chairman and Chief Executive Officer, stated, “The COVID-19 coronavirus pandemic has been a significant disruption to the U.S. economy and our business. However, our value proposition of getting our customers Ready for the Workday® has resonated loudly, and our employees, whom we call partners, have been resilient in this difficult environment. In addition, we remain committed to delivering shareholder value, and our double-digit dividend increase even in this difficult environment reflects that commitment.”

Cintas also announced that the Board of Directors approved a change in dividend policy from an annual dividend to quarterly dividends. The Board of Directors also declared a quarterly dividend of $0.70 per share, which is payable on December 4, 2020 to shareholders of record as of November 6, 2020. The Company expects future quarterly dividend payments to occur in March, June, September and December. Any future dividend declarations, including the amount of any dividends, are at the discretion of the Board of Directors and dependent upon then-existing conditions, including the Company’s operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that the Board of Directors may deem relevant.

Cintas Corporation is a supplier of corporate identity uniform programs, entrance and logo mats, restroom supplies, promotional products, first aid, safety, fire protection products and services, and industrial carpet and tile cleaning. The company’s products and services include uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety compliance training. Cintas has paid a dividend every year since the Company went public in 1983.