Tempur Sealy International, Inc. (TPX) will start paying a quarterly dividend of 7 cents per share to shareholders. This results in an annual dividend payment of $58 million to shareholders of the bedding products maker.

For the first quarter of 2021, the Board of Directors has declared a dividend of $0.07 per share. The dividend is payable on March 12, 2021 to shareholders of record as of February 25, 2021. An annualized dividend rate of 28 cents per share will yield 0.9% at a stock price of $32.18.

The Company also announced that its Board of Directors has increased the existing authorization under the Company's share repurchase program by over $200 million to a total of $400 million.

Tempur Sealy Chairman and CEO Scott Thompson commented, "The Board of Directors has initiated a quarterly cash dividend and once again authorized an increase to our share repurchase authorization. Our new quarterly dividend paired with our share repurchase strategy reflects our confidence in the long-term growth outlook of the business. Our record low financial leverage, robust cash flow attributes and our anticipated growth in 2021 position us well to continue to return value to our shareholders while simultaneously investing in our people and business over the long term."

Tempur Sealy International, Inc. is a bedding and bedding products manufacturer. The company's two segments are North America and International. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the United States and Canada. Its International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America. Brands include TEMPUR, Tempur-Pedic, Sealy, Sealy Posturepedic, and Stearns & Foster. Tempur Sealy initiated a quarterly dividend in 2021.