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Columbus McKinnon Corp. is going to start paying a dividend to its shareholders.

The Amherst-based material handling equipment maker plans to start paying a quarterly dividend of 4 cents per share to shareholders during May, the company said.

Columbus McKinnon, which had nearly $124 million in cash on its books at the end of last year, said it has ample cash to fund the dividend payments, which will cost the company about $3.2 million a year.

“Columbus McKinnon has successfully demonstrated its ability to generate cash throughout all business cycles,” said Timothy T. Tevens, the company’s president and chief executive officer, in a statement. “Our intention is to pay a regular dividend through all stages of the business cycle and reward our shareholders by increasing it as we strategically grow.”

The first dividend payment will be made on May 19 to shareholders of record on May 9.