Allison Transmission Holdings Inc. (ALSN) will raise its quaterly dividend by 11.8 percent to 19 cents per share in 2021. This follows a 13.3 percent hike to $0.15 per share in 2020. This is the second dividend increase by the company since 2014.

The next dividend will be paid on March 5, 2021 to shareholders of record on February 22, 2021. The new annual dividend rate of 76 cents per share yields 1.8% at a stock price of $43. The company will now pay $86 million in dividends to shareholders annually if we include this new dividend hike.

Allison Transmission Holdings is a manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Allison transmissions are used in a variety of applications including refuse, construction, fire, distribution, bus, motorhomes, defense and energy. Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. Allison has regional headquarters in the Netherlands, China and Brazil with manufacturing facilities in the U.S., Hungary and India. Allison also has independent distributor and dealer locations worldwide. The company has paid a dividend every year since 2012.