Eaton (ETN +2.20%) has added several cents to its latest quarterly dividend. The company will hand out $0.42 per share of its common stock on March 22 to shareholders of record as of March 11. That amount represents an 11% raise over the previous disbursement, which the company had paid in each quarter of 2012. Before that, the dividend was $0.34 per share.
Eaton is a habitual dividend payer. Since 2010, it has adjusted its distribution at least once per year.
The company said it estimates that the bulk of the disbursement will be treated as a return of capital for U.S. tax purposes.
The new dividend annualizes to $1.68 per share, yielding 2.7% at Eaton's current stock price of $61.69.
