Hawaiian Electric Industries Inc., citing a “solid foundation for future growth at both our bank and utility subsidiaries,” announced Friday its first dividend increase in 21 years as it reported a 53.1 percent jump in fourth-quarter earnings.

The state’s dominant utility provider and the owner of American Savings Bank said it benefited from higher utility rates, federal tax reform and record full-year earnings from the bank.

Its new dividend, which was raised to 32 cents a share from 31 cents, represents a 3.4 percent annualized yield based on Friday’s closing price of $37.86 — up 18 cents for the day following the announcement.

HEI has been paying dividends uninterruptedly since 1901 but had not raised its quarterly payout since increasing it to 62 cents a share from 61 cents in the first quarter of 1998. In 2004 HEI split its stock 2-for-1 to bring the split-adjusted dividend price to 31 cents. The new dividend will be payable March 13 to shareholders of record at the close of business Feb. 26.

The Honolulu-based company said net income last quarter increased to $49.6 million, or 45 cents a share, from $32.4 million, or 30 cents a share, in the year-earlier period.

For the year, HEI’s earnings jumped 22.1 percent to $201.8 million.

Revenue rose 15.6 percent to $761.7 million for the quarter and 11.9 percent to $2.86 billion for the year.

HEI said it is on track to beat its 2020 goal of 30 percent electricity sales from renewable sources.

“Our electric company generated 27 percent of its sales from renewable energy, despite the lava-related shutdown of a third-party owned geothermal plant in 2018, and invested more than $400 million to strengthen the resilience of our electric systems across the islands we serve,” HEI President and CEO Connie Lau said. “American Savings Bank … finished the year with a very strong fourth quarter … (and) is well positioned to continue to grow in 2019 and achieve even greater efficiency.”