Viacom said its board of directors approved a 67% increase in its quarterly dividend to 25 cents per share from 15 cents per share.
With the economy recovering, media companies have been trying to boost their returns to investors, both by buying back shares and by raising dividends.
"Viacom is in excellent shape financially and momentum across our businesses is strong," Viacom president and CEO Philippe Dauman said in a statement. "This substantial increase in our dividend, as well as our ongoing stock buyback program, reflects the confidence we have in our ability to generate ample free cash flow to support returning greater value to our stockholders while continuing to maintain a strong balance sheet and invest in the long-term growth of our operations."
The new dividend will be paid July 1 to shareholder of record as of June 15.