Grainger Dividend Fetches 2.2% Yield

W.W. Grainger, Inc. GWW disclosed that its board has declared a cash dividend of $1.22per share. On a full year basis, this worked out to $4.88 a share. The dividend provided 2.2 percent yield, which was ahead of the five-year average yield of 1.7 percent.

Grainger said the dividend would be payable on September 1to its shareholders, whose name appears on the record books of August 8.

The company has been increasing its dividend pace for more than four decades. As a result, its dividend growth rate for the five-year period was 15.83 percent. The average dividend growth pace was 12.48 percent for the three-year period.

The electrical equipment maker has also increased its dividend payout ratio to about 41.0 percent from the average 35.0 percent payout ratio recorded in the five-year period.

At time of writing, the stock traded down 0.55 percent at $218.34.