Hewlett-Packard Board Approves 10% Dividend Increase

By Melodie Warner

Hewlett-Packard Co.'s ( HPQ ) board authorized a 10% dividend increase as the technology company looks to deliver a greater return to investors.

The company raised its quarterly dividend to 14.52 cents from 13.2 cents, starting with the next dividend declaration, expected to occur in May. Hewlett-Packard will spend about $106 million more a year for the higher payout.

The company has about 2 billion shares outstanding.

Moody's Investors Service on Monday said the amount of cash held by non-financial U.S. companies climbed 10% in 2012 from the prior year and the technology sector had the largest cash hoard.

Hewlett-Packard reported last month its first-quarter earnings declined 16% as sales in its core personal computer business continued to weaken. The company is in the midst of a multiyear turnaround as the personal-computer market faces growing pressure from mobile devices, intense price competition and economic uncertainty in emerging markets.

Shares recently traded at $22.65, down 1.2%, premarket. The stock is up 61% so far this year through Wednesday's close.

Write to Melodie Warner at melodie.warner@dowjones.com

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