Fidelity National Information Services (FIS) will raise its quarterly dividend by 11.4 percent to 39 cents per share in 2021. This follows a 9.4 percent to $0.35 per share in the first quarter of 2019. The company did not announce a dividend hike in 2020.

The increased dividend is payable on March 26, 2021, to shareholders of record as of close of business on March 12, 2021. A new annualized dividend rate of $1.56 per share yields 1.2% at a stock price of $132.32.

“We believe that FIS shares are trading well below intrinsic value and that repurchasing shares of FIS is a good use of capital at this time. Our strong business fundamentals and robust free cash flow enable us to continue investing for growth, both organically and through M&A, while continuing to pay down debt to meet our leverage target and return capital to our shareholders,” said Gary Norcross, FIS chairman, president and chief executive officer in the company's press release announcing this dividend hike. “The Board’s decision to approve a new share repurchase program in conjunction with an increase in our quarterly dividend reflects continued confidence in the strength of our financial position, the durability of our business model and the future of FIS.”

FIS is a provider of financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. The company operates through three segments: Integrated Financial Solutions (IFS), Global Financial Solutions (GFS), and Corporate and Other, which includes Public Sector and Education, Global Commercial Services and Retail Check Processing.