Seagate announces 3.1 percent dividend increase

Seagate Technology (STX) has announced a 3.1 percent increase for its quarterly dividend. This follows last year's 3.2 percent increase to $0.65 per share and also is the second consecutive annual dividend increase by the provider of electronic data storage technology and solutions.

Seagate stock now yields more than 5%. In 2020 the stock price has lost almost 13 percent as of October 22, 2020.

The increased dividend will be payable on January 6, 2021 to shareholders of record as of the close of business on December 23, 2020. A new annual rate of $2.68 per share yields 5.1% at a stock price of $51.79.

The payment of any future quarterly dividends will be at the discretion of the Board and will be dependent upon Seagate’s financial position, results of operations, available cash, cash flow, capital requirements, distributable reserves, and other factors deemed relevant by the Board.

Seagate now pays an estimated $688 million in dividends to shareholders annually. The company suspended its dividend in 2010 after a 93.8 percent dividend cut in 2009. A dividend was reinstated in 2011.

Another US company announcing a dividend increase Thursday is Standex International (SXI).

Seagate Technology is a provider of data storage technology and solutions. The company's principal products are hard disk drives, hard drives or HDDs. In addition to HDDs, Seagate produces a broad range of data storage products including solid state drives (“SSDs”), solid state hybrid drives (“SSHDs”) and storage subsystems.