ATLANTA (AP) — UPS says it is increasing its quarterly dividend by 8 percent as a result of the shipping company's improved cash flow.

The U.S.-based company said Thursday that it will pay a dividend of 67 cents per share March 11 to shareholders of record as of Feb. 24. That's up from its most recent dividend of 62 cents per share.

UPS said the company generated $5.3 billion in free cash flow during 2013, allowing it to reinvest in the business and improve returns to shareholders.

Shares of United Parcel Service Inc. rose 53 cents to close regular trading at $96.56 and tacked on another 4 cents in extended trading following the dividend announcement.