ConAgra Foods Inc. (CAG) raised its quarterly dividend by 5.3% just three days after boosting earnings expectations.

Over the last year dividend boosts were scarce as the financial crisis intensified, but they have been returning as the global economy stabilizes. Standard & Poor's said in July the number of companies that raised dividends hit a record low in the second quarter, while the number of companies that cut their dividends was the largest in more than 50 years.

ConAgra on Friday credited the 1-cent dividend boost to 20 cents a share to its "strong earnings outlook and healthy annual cash flows." The increase will cost the company $18 million a year.

Tuesday, ConAgra posted earnings that topped Wall Street's expectations, helped by cost cuts and solid performances from brands such as Hunt's sauces and Healthy Choice meals. That led the company to raise its fiscal-year earnings forecast to $1.70 a share from $1.63 to $1.66.

Like other packaged food makers, ConAgra has benefited from a moderation in commodity costs, which has helped profit margins. The company also has benefited during the economic downturn as consumers spend more on eating at home.

ConAgra shares closed Thursday at $21.74 and were inactive premarket. The stock is up 11% in the past year, outperforming the broader market.

-By Mike Barris, Dow Jones Newswires; 212-416-2330; mike.barris@dowjones.com;