Graco Inc. /zigman2/quotes/201124844/composite GGG +2.48% said Friday it is raising its quarterly divided by 12%, to 21 cents a share from 18.75 cents. Shareholders of record as of Jan. 18 will be paid the dividend on on Feb. 2. The fluids and coatings management company's stock fell 1.6% in midday trading. At current prices, the new annual dividend rate implies a dividend yield of 1.13%, which compares with the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.28% of 1.37%. The stock has gained 2.6% year to date, while the S&P 500 has slipped 0.6%.