Advance Auto Parts (AAP) will raise its quarterly dividend by 300 percent to $1.00 per share in 2021. This follows a dividend hike of no less than 316.7 percent to $0.25 per share in 2020. This is the second dividend increase by the automotive aftermarket parts provider since a quarterly dividend was initiated in 2006.

The next dividend is payable July 2, 2021 to shareholders of record at the close of business on June 18, 2021. A new annual dividend rate of $4.00 per share yields 2.0% at a stock price of $200.

“In recognition of our 2020 results, strong financial position and confidence in our ability to deliver additional top- and bottom-line growth this year, the Board has voted to significantly increase the quarterly dividend," said Tom Greco, president and chief executive officer. “Across Advance, we remain focused on our financial priorities of maintaining an investment grade rating, investing in the business and returning cash to shareholders. This increase in the quarterly cash dividend combined with the additional share repurchase authorization announced today reflects our commitment to a balanced approach to returning cash to shareholders.”

Advance Auto Parts, Inc. provides automotive aftermarket parts in North America, serving professional and do-it-yourself, customers. The company's stores and branches offer a selection of brand name, original equipment manufacturer and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. Advance Auto Parts operates stores and Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The company also serves independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.