Lancaster Colony hikes dividend by 7.1%

Lancaster Colony Corporation (LANC) will raise its quarterly dividend by 7.1 percent to 75 cents per share in 2020. This follows a 7.7 percent dividend hike to $0.70 per share in 2019 and also marks the 58th consecutive year of annual dividend increases for specialty food products maker.

The next dividend will be payable December 31, 2020 to shareholders of record on December 7, 2020. A new annual rate of $3.00 per share yields 1.7% at a stock price of $173.

In the press release dated November 11, 2020 announcing this dividend hike CEO David A. Ciesinski said, "The increased regular cash dividend reflects the company's continued strong financial position and will be the 230th consecutive quarterly cash dividend paid by the company since September 1963."  He noted that the indicated annual payout for the current fiscal year ending June 30, 2021 is $2.95 per share, up from the $2.75 per share paid in fiscal 2020.

Lancaster Colony will now pay an estimated $83 million in dividends to shareholders annually. The last double digit dividend hike was announced in 2016 with a 10.0 percent increase.

Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice markets. Lancaster Colony is the parent of the T. Marzetti Company. The company's brands include Marzetti (salad dressings and dips), New York Brand (frozen garlic breads and croutons), Sister Schubert’s (homemade rolls) and Flatout (flatbread wraps). Lancaster Colony went public in 1969, the same year the company entered the specialty foods business with the purchase of the T. Marzetti Company. The company has paid consecutive quarterly dividends since 1963.