Eaton Corporation plc (ETN) will raise its quarterly dividend by almost 8 percent to $0.71 per share in the first quarter of 2019. In 2018 the industrial company hiked its dividend by 6 cents to 66 cents per share quarterly.

The next dividend is payable March 22, 2019 to shareholders of record at the close of business on March 9, 2019. The company states that, for U.S. tax purposes, Eaton estimates that all of the 2019 dividend will be treated as a return of capital to shareholders, to the extent of the shareholder’s tax basis in the shares.

A new annualized rate of $2.84 per share yields 3.5% at a stock price of $80.64.

Eaton is a power management company with 2018 sales of $21.6 billion. Its energy-efficient solutions help customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. The company is dedicated to improving the quality of life and the environment through the use of power management technologies and services. Eaton employs 99,000 people worldwide and sells products to customers in more than 175 countries. Eaton has paid dividends on its shares every year since 1923.