APD Air Products and Chemicals Inc

Air Products & Chemicals Inc. (APD) raised its quarterly dividend for the 28th straight year, saying the latest increase will be 8.9%.

The industrial gas maker's increase to 49 cents a share will add $35 million a year to the company's payouts to common shareholders.

Air Products has seen recent strength, reporting in January that its fiscal first-quarter profit more than tripled and topped analysts' forecasts as it benefited from an improving economy and cost-cutting measures.

The company also is embroiled in a takeover battle, fighting to acquire smaller rival Airgas Inc. (ARG) against its will. A deal would create the largest industrial-gas maker in North America by revenue.

Shares of Air Products were recently down 14 cents to $74.41. The stock has fallen 8.2% so far this year.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com