Evolution of the germination rate (the proportion of newly produced and dormant seeds that germinates every year) of annual plants is investigated, when the environment is temporally stochastic and spatially heterogeneous. The environment consists of two habitats with synchronous stochastic variation in the annual yield and permanent difference in constant seed survival rates. Density dependence operates within the habitats, which are connected via restricted seed dispersal. We find that instead of a single common evolutionarily stable strategy the coexistence of several germination strategies is possible and that in an initially monomorphic population evolutionary branching may occur. During evolutionary branching the population undergoes disruptive selection and splits into two branches of different lineages that converge to the evolutionarily stable coalition of different germination strategies. It is shown that spatial heterogeneity and restricted dispersal are essential for evolutionary branching. Disruptive selection on the germination rate presents yet another possibility for parapatric speciation.