The Fastenal Company (FAST) will pay a special cash dividend of $0.40 per share in 2020. This comes after the wholesale distribution company already raised its quarterly dividend by 13.6 percent to 25 cents per share earlier in 2020. Fastenal has boosted its regular quarterly dividend for 19 consecutive years.

The one-time special dividend will be paid on December 22, 2020 to shareholders of record at the close of business on December 2, 2020. The regular annual dividend rate of $1.00 per share yields 2.1% at a stock price of $47.30.

Fastenal pays its shareholders an estimated $574 million in dividends annually. The company dividend growth rate is 12.3 percent on average annually in the last five years with a double digit dividend hike announced in four of the last six years including 2018, 2019 and 2020.

Other US companies announcing special dividends recently are MSC Industrial Direct, Costco Wholesale and RLI Corp.

Fastenal is engaged in wholesale distribution of industrial and construction supplies, including threaded fasteners and miscellaneous supplies, tools, metal cutting tool blades and abrasives, fluid transfer components and accessories for hydraulic and pneumatic power, material handling, storage and packaging products, janitorial, chemical and paint products, electrical supplies, welding supplies, safety supplies, metals, alloys and materials and office supplies. Fastenal Company began as a partnership in 1967, and was incorporated under the laws of Minnesota in 1968. Fastenal began paying annual dividends in 1991, semi-annual dividends in 2003, and then expanded to quarterly dividends in 2011.