The Fastenal Company (FAST) will raise its quarterly dividend by 12 percent to $0.28 per share in 2021. Last year the industrial company paid a a special cash dividend of $0.40 per share and raised its quarterly dividend by 13.6 percent to 25 cents per share. Fastenal has boosted its regular quarterly dividend for 20 consecutive years.

The one-time special dividend will be paid on March 3, 2021 to shareholders of record at the close of business on February 3, 2021. The regular annual dividend rate of $1.12 per share yields 2.3% at a stock price of $49.

Fastenal began paying annual dividends in 1991, semi-annual dividends in 2003, and then expanded to quarterly dividends in 2011. In addition to these regular dividend payments, Fastenal has previously paid special one-time dividends in December 2008, December 2012, and December 2020. 

Fastenal pays its shareholders an estimated $643 million in dividends annually, up from $574 million before this new dividend hike. The company dividend growth rate is 13.3 percent on average annually in the last five years with a double digit dividend hike announced in four of the last seven years including 2018, 2019 and 2020.

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.