Lamb Weston Holdings Inc. (LW) will raise its quarterly dividend by 2.2 percent to 23.5 cents per share. This comes after a 15.0 percent hike to $0.23 per share was announced by the supplier of potato products last year. This is the 4th year of dividend increases by Lamb Weston, a member of the S&P500-index.

The new dividend is payable on March 5, 2021 to stockholders of record at the close of business on February 5, 2021. A new annualized dividend rate of 94 cents per share yields 1.2% at a stock price of $79.

Last year Lamb Weston stated that it will continue to target an annual dividend payout ratio of 25 percent to 35 percent of adjusted diluted earnings per share. The company now pays an estimated annual dividend of $138 million to its shareholders.

Lamb Weston Holdings, Inc. is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers worldwide. The company is the number one supplier of value-added frozen potato products in North America and a leading supplier of value-added frozen potato products internationally with French fries representing the majority the product portfolio. Lamb Weston has four reportable segments: Global, Foodservice, Retail, and Other. Lamb Weston became an independent publicly traded company in 2016 when the company was separated from Conagra Brands.