Zoetis (ZTS) will raise its quarterly dividend by 25 percent to 25 cents per share in 2021. This comes after a 22.0 percent hike to $0.20 per share announced last year for in the first quarter of 2020. The animal health company has now raised its dividend 7 straight years.

The dividend is to be paid on March 1, 2021, to holders of record on Wednesday, January 20, 2021. A new annualized dividend rate of $1.00 per share yields 0.6% at a stock price of $159.53.

“Zoetis continues to demonstrate its resiliency and strength thanks to the essential nature of our business and our diverse and innovative product portfolio,” said Glenn David, Executive Vice President and Chief Financial Officer in the company's press release dated December 10, 2020, announcing this dividend hike. “We are well-positioned to generate increased cash for future investment opportunities that will benefit our customers, and I am pleased to announce that we are increasing our dividend by 25% in 2021 as part of our commitment to returning excess capital to shareholders.”

The company will now pay an estimated $475 million in dividends to shareholders annually. The average annual dividend growth rate for Zoetis is 21.4 percent based on the last five years.

Zoetis Inc. is an animal health company. Zoetis discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products, genetic tests, biodevices and a range of services. Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals worldwide. The company, formerly a subsidiary of Pfizer, went public in 2013 and has paid a dividend ever since.