WEC Energy Group (WEC) will raise its quarterly dividend by 7.1 percent to 67.75 cents per share in 2021. This follows a dividend hike of 7.2 percent to $0.6325 per share in the first quarter of 2020 and will mark the 18th consecutive year of annual dividend increases by the utility company.

In the press release dated December 3, 2020, announcing this increase, the company's directors expect to declare the new dividend at their regularly scheduled meeting in January. The dividend — which would be equivalent to an annual rate of $2.71 per share — would be payable March 1, 2021, to stockholders of record on Feb.14, 2021.

"The board's review today is consistent with our ongoing plan that targets a dividend payout ratio of 65 to 70 percent of earnings," said Gale Klappa, executive chairman.

The projected dividend growth for 2021 is in line with the company's longer-term objective to grow earnings per share at a rate of 5 to 7 percent annually. A new annualized dividend rate of $2.71 yields 2.9% at a stock price of $94.38.

WEC Energy Group, Inc. is a holding company, which has electric and natural gas utility operations with customers in Wisconsin, Illinois, Michigan and Minnesota. The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. The company's other major subsidiary, We Power, designs, builds and owns electric generating plants. WEC has paid a dividend every year since 1942.