AGCO hikes dividend by 25% and pays special dividend

AGCO Corp (AGCO) will raise its quarterly dividend by 25 percent to 20 cents per share in 2021. Also the tractor maker will pay a special dividend of $4.00 per share. This is the first dividend hike announced by the company since 2019, when the dividend was hiked by 6.7 percent to $0.16 per share. This new dividend hike will mark the 8th year of annual dividend increases.

The next regular quarterly dividend of 20 cents will be paid on June 15, 2021 to all stockholders of record as of the close of business on May 14, 2021. A new annualized dividend rate of 80 cents per share yields 0.5% at a stock price of $153. 

The special dividend of $4.00 per share will be paid by AGCO to shareholders of record on May 10, 2021 with a payment date of June 1, 2021. The ex-date for the special dividend is May 7, 2021. The special dividend yields 2.6% at the current stock price mentioned above.

AGCO Corporation is a manufacturer and distributor of agricultural equipment and solutions. AGCO products are sold through five core brands, Challenger, Fendt, GSI, Massey Ferguson and Valtra, supported by Fuse smart farming solutions. The company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. AGCO's segments are North America, South America, Europe/Middle East, and Asia/Pacific/Africa. The company was founded in 1990 and is headquartered in Duluth, Georgia, USA. AGCO has paid a dividend every year since 2013.