With a strong outlook for cash flow this year Lockheed Martin [LMT] on Thursday said its board has approved an increase in the quarterly dividend and also boosted the stock buyback program.

Lockheed Martin Chairman, President and CEO Marillyn Hewson
Lockheed Martin Chairman, President and CEO Marillyn Hewson

Lockheed Martin said it is increasing its quarterly dividend by 17 cents, or nearly 13 percent, to $1.50 per share payable Dec. 26. The new payment marks the 12th consecutive year the company has made a double-digit raise to the dividend.

Lockheed Martin also increased the share repurchase authorization by up to $2 billion with the number of shares purchased and the timing of purchases to be made at the discretion of management. At the end of June, the company still had $2.3 billion left under its previous share repurchase authorization.

A year ago Lockheed Martin increased its share repurchase authorization by $3 billion.

In its second quarter, Lockheed Martin posted $827 million in free cash flow and said it expects cash from operations by year to be at least $4.8 billion.