On the back of a highly encouraging earnings report, Polaris Industries (PII 1.21%) has declared the latest in a long series of regular dividend raises. The off-road vehicle and motorcycle maker announced Wednesday that it's bumping its quarterly payout 2% higher to $0.63 per share.

At the most recent closing share price, this would yield 2.2%. The raised dividend is to be handed out on March 15 to stockholders of record as of March 1.

In its announcement, Polaris sounded a confident note about the finances that are giving it room to raise the distribution. It didn't hesitate to mention that it generated over $1 billion in cash flow last year. "As we look to 2021, our financial position remains strong, despite the unprecedented times globally," interim CEO Mike Speetzen said.

A worker driving a Polaris commercial vehicle.

Image source: Polaris Industries.

A constantly rising dividend is a priority for Polaris. With this new hike, the company has now increased its payout every year for 26 years in a row.

The company's robust cash flow and solid fundamentals of late support that higher spend. On Monday, the company reported its fourth-quarter 2020 figures, revealing that strong growth pushed its non-GAAP (adjusted) net income to $3.34 per share. That was 83% higher compared to the same quarter of 2019, trouncing analyst estimates.

Investors might have been expecting a more generous dividend boost. Polaris stock inched up by 0.2% on Wednesday, lagging behind the nearly 1% gain of the S&P 500 index.