Specialty paper maker Domtar (NYSE:UFS) wrote it all down yesterday: it will pay a regular quarterly dividend of $0.55 per share that's 22% higher than the $0.45 per share payout it made last quarter. Shareholders of record on June 14 will receive the new dividend rate at the close of business on July 15.

The specialty paper maker's president and CEO John D. Williams said:

The Board's decision to increase the dividend recognizes the continued progress we are making on our strategic roadmap. Our commitment is to return the majority of free cash flow to shareholders and our aspiration is to grow the dividend to a level that balances our strategic objectives of bringing growth and stability to our earnings and creating shareholder value. 

Domtar drakes a wide variety of fiber-based products including communication papers, specialty and packaging papers, and adult incontinence products.

The most recent dividend payment equates to a $2.20-per-share annual dividend yielding 3.2% based on the closing price of Domtar's's stock on May 1.

UFS Dividend Chart

UFS Dividend data by YCharts
Chart does not reflect the new, higher dividend payment