Philip Morris International's board has raised the tobacco company's quarterly dividend by 8.8%, to $1.60 from $1.47.

The new payout, equal to $6.40 a year, represents an annual yield of about 3.36%, based on Thursday's closing price of $190.48, up from 3.09%.

The Stamford, Conn., company on Friday said the increased dividend is payable Oct. 26 to shareholders of record Oct. 2.