Alico, Inc. (ALCO) will raise its quarterly dividend by 177.8 percent to 50 cents per share in 2021. A new annual dividend rate of $2.00 per share yields 5.6% at a stock price of $35.46.

The Alico Board of Directors approved an increase in the quarterly dividend from $0.18 per common share to $0.50 per common share, which represents an approximate 178% increase, effective the third quarter of fiscal year 2021.

John Kiernan, Alico’s President and Chief Executive Officer, commented, “The Board of Directors decision to substantially increase our common dividend to a $2 annual level reflects their continued confidence that our business strategy supports a higher level of return of capital to our shareholders. We are also pleased with the continued buyer interest in our Ranch land, which has allowed us to close sales transactions at premium prices. As reported last month, Alico will use these asset sale proceeds to continue to retire portions of our remaining $39 million of variable rate term loans, which will further improve subsequent annual cash flow as future debt service is eliminated.

Alico is one of the largest citrus producers in the United States of America. The company owns acres of land in eight Florida counties (Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands and Polk) including mineral rights acres. Alico's principal lines of business are citrus groves and conservation. The company operates two divisions: Alico Citrus, a citrus producer, and Water Resources and Other Operations, a water storage and environmental services division. Alico, Inc. was incorporated under the laws of the state of Florida in 1960.