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Dominion increases annual dividend rate

RICHMOND, Va. (AP) -- Dominion Resources Inc. said Tuesday that it is increasing its annual dividend rate by 6.7 percent.

The Richmond, Va., energy transportation company set its dividend rate for 2014 at $2.40 per share, up from $2.25 per share in 2013. The company anticipates it will make its first quarterly dividend of 60 cents per share in March, pending board approval.

Dominion's dividend policy, as of December 2012, is to pay shareholders 65 percent to 70 percent of its operating earnings.

The company operates 11,000 miles of natural gas transmission, gathering and storage pipeline as well as 6,400 miles of electric transmission lines.

Shares of Dominion increased 6 cents to $63.92 in afternoon trading, in line with broader market trends. Its shares are up 23 percent over the past year.