HVAC equipment manufacturer AAON (NASDAQ:AAON) announced yesterday that it was raising the company's second-quarter dividend of $0.10 per share, a 25% increase from the $0.06 per share rate it previously paid. At the same time, the company also said it was splitting its stock 3-for-2, which will be paid in the form of a stock dividend on July 2 to shareholders of record on June 13, the same time as the new, higher dividend will be paid.

Shareholders of record will receive one additional share for every two shares they hold for the split, with cash being paid in lieu of fractional shares. The new dividend payment will equate to $0.20 annually, post-split.

AAON President and CEO Norman H. Asbjornson said he believes the moves "will increase our liquidity in the market." 

Based on the shares outstanding as of April 25, AAON estimates that the number of shares outstanding will increase from approximately 24.5 million to approximately 36.7 million.

The regular dividend payment equates to a $0.40-per-share annual dividend yielding 1.2% based on the closing price of AAON's stock on May 21.