The Timken Company (TKR) will raise its quarterly dividend by 3.7 percent to $0.28 per share in the second quarter of 2018. This follows a 3.8 percent dividend hike by Timken last year.

The dividend is payable on June 4, 2018, to shareholders of record as of May 18, 2018. The new dividend yield for TKR is 2.3%.

"A strong and growing dividend is a focus of our capital allocation strategy to create long-term value for our shareholders," said Richard G. Kyle, Timken president and chief executive officer. "This dividend increase reflects the company's financial strength and our confidence in our strategy and future growth prospects."

This marks the 384th consecutive quarterly dividend paid on the common shares of the company since The Timken Company joined the New York Stock Exchange in 1922, one of the longest-running dividend records among NYSE-listed companies.

The Timken Company engineers, manufactures and markets bearings, gear drives, belts, chain, couplings, and related products, and offers a spectrum of powertrain rebuild and repair services. The company's industrial brands include Timken, Fafnir, Philadelphia Gear, Groeneveld, Drives and Lovejoy.