Valvoline (VVV) will raise its quarterly dividend by 10.6 percent to 12.5 cents per share in 2020. This follows a 6.6 percent hike to $0.113 per share in 2019. The lubricants maker hiked its dividend every year since 2017.

The increased dividend will be payable on December 15, 2020, to shareholders of record as of the close of business on November 30, 2020. The new annualized dividend rate of 50 cents per share yields 2.2% at a stock price of $22.35 for VVV.

In the press release announcing the dividend hike Valvoline also announced that the board of directors authorized the company to repurchase up to $100 million of its common stock. The timing and amount of any purchase of shares of common stock will be based on the level of Valvoline's liquidity, general business and market conditions and other factors, including alternative investment opportunities. The term of the new share repurchase authorization extends through Sept. 30, 2021. The dividend and share repurchase authorization is part of a broader capital allocation framework to deliver value to shareholders by first driving growth in the business, organically and through acquisitions, and then returning excess cash to shareholders through dividends and share repurchases.

Valvoline Inc. is a worldwide marketer and supplier of engine and automotive maintenance products and services.  Established in 1866, Valvoline’s heritage spans over 150 years, during which it was the petroleum industry’s first U.S. trademarked motor oil brand and has developed powerful name recognition across multiple product and service channels. In addition to the iconic Valvoline-branded passenger car motor oils and other automotive lubricant products, Valvoline provides a wide array of lubricants used in heavy duty equipment, as well as automotive chemicals and fluids designed to improve engine performance and lifespan. The company operates and franchises Valvoline Instant Oil Change centers in the United States. It also markets Valvoline lubricants and automotive chemicals, MaxLife lubricants, SynPower synthetic motor oil and Zerex antifreeze. Valvoline was incorporated in May 2016 as a subsidiary of Ashland Global Holdings Inc. (ASH). Prior to this time, Valvoline operated as an unincorporated commercial unit of Ashland.