Intel will boost its quarterly dividend to 18 cents a share, the company announced Friday.
The chipmaker, which currently pays shareholders 15.75 cents a share, said it is upping its dividend as it is "on track" to have its "best year ever."
"Our ongoing operational performance and confidence in our business going forward provide the ability to return more cash to shareholders," Paul Otellini, Intel's chief executive offficer and president said in a statement released by the company.
The dividend increase will go into effect in the first quarter of 2011.
Shares of the company were up 1 percent in pre-market trading.