Marathon Petroleum (MPC) will raise its quarterly dividend by 15 percent to $0.45 per share in the first quarter of 2018. Last year the dividend was hiked by 11.1 percent.

The new dividend is payable March 12, 2018, to shareholders of record as of the close of business Feb. 21, 2018. MPC currently has a dividend yield of 2.2%.

"The $0.46 dividend approved by our Board represents a 15 percent increase to our regular dividend under an accelerated timeline," said Gary R. Heminger, chairman and chief executive officer.  "As we near the closing of the final phase of the strategic actions undertaken in 2017, we remain highly confident in the long-term cash generation of the business, further supported by the reduced cash burden resulting from tax reform."

Since becoming an independent company in June 2011, MPC has increased its regular quarterly dividend at a 26.5 percent compound annual growth rate. This strong growing base dividend, along with MPC's substantial share repurchases, have combined to return over $13 billion of capital to the company's shareholders over this time period. "We have balanced our return of capital to shareholders with continued long-term investment in the business," said Heminger. "Achieving this balance and maintaining an investment grade credit profile are fundamental elements of MPC's capital-allocation strategy and drive the value proposition for our investors."

Marathon Petroleum Corporation is an integrated, downstream energy company headquartered in Findlay, Ohio. The company's business includes petroleum product refining, marketing, retail and transportation. Also MPC is one of the largest natural gas processors in the United States. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. Speedway LLC, an MPC subsidiary, owns and operates retail convenience stores across the United States. MPC also owns the general partner and majority limited partner interests in two midstream companies, MPLX LP and Andeavor Logistics LP, which own and operate gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. Marathon Petroleum Corporation has roots tracing back to the formation of the Ohio Oil Company in 1887.