The new quarterly dividend is 19 cents, up from 17 cents. The dividend will be paid on Jan. 25 to shareholders as of Dec. 24.
The board of Fairfield, Conn.-based General Electric Co. is also extending GE's stock buyback plan through 2015. It's authorizing up to $10 billion for additional shares. The plan had $4.9 billion available for repurchase at the end of the third quarter.
GE manufactures products such as jet engines and refrigerators and provides equipment and services to a growing roster of energy companies.
GE shares rose 2 cents to $21.64 in morning trading.