Alamo Group (ALG) will raise its quarterly dividend by 7.7 percent to 14 cents per share in 2021. This comes after a dividend hike of 8.3 percent to $0.13 per share announced in the first quarter of 2020. This is the second dividend hike announced by the company since 2018.

The next dividend will be paid on January 29, 2021 to shareholders of record at the close of business on January 19, 2021. A new annual dividend rate of $0.56 per share yields 0.4% at a stock price of $150.85.

Alamo Group will now pay an estimated $7 million in dividends to shareholders annually. In 2020 the stock price gained 9.9 percent, dividends not included. Alamo has raised its dividend by an average of 9.2 percent annually in the last five years.

Alamo Group is a manufacturer and distributor of equipment for infrastructure maintenance, agriculture and other applications. The company's products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements and related after-market parts and services. Alamo operates plants in North America, Europe, Australia and Brazil. The company was founded in 1969. Alamo's corporate offices are located in Seguin, Texas. Alamo Group has been paying a dividend to shareholders every year since 1993.