By Colin Kellaher

Norfolk Southern Corp. on Wednesday said its board raised the quarterly dividend by 5.3%, to 99 cents, from 94 cents.

The new payout, equal to $3.96 a year, represents an annual yield of about 1.66% based on Tuesday's closing price of $238.09, up from 1.58%.

The Norfolk, Va., freight railroad said it also raised its long-term target dividend payout ratio to a range of 35% to 40% of net income from a prior target of 33%.

Norfolk Southern said the increased dividend is payable March 10 to shareholders of record Feb. 5.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

01-27-21 0829ET