UPS United Parcel Service

United Parcel Service Inc. boosted its dividend by 8.1%, the third consecutive year the delivery company has increased the quarterly payout by five cents a share.

The new payout will amount to $2.68 a share a year and will cost the company an additional $186 million annually. The company raises the payout on a fairly consistent yearly basis, last declining to do so in 2009. UPS said since 2000, the dividend has more than tripled.

The news of the higher dividend comes after UPS last month issued disappointing fourth-quarter results that were hurt badly by holiday delivery problems. UPS outlined efforts to prevent another Christmas debacle, including plans to invest in expanding some of its hubs to handle more packages.

Shares were down 0.5% to $96.07 in after-hours trading.

Write to John Kell at john.kell@wsj.com

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