Meredith Corporation ( MDP - Analyst Report ) recently increased its quarterly dividend by 6.5%, bringing the annualized payout to $1.63 per share with a healthy dividend yield of 4.5% based on yesterday’s closing price.

The move is a part of the company’s TSR (Total Shareholder Return) strategy, wherein this leading media and marketing company intends to boost shareholders value through dividends, share repurchases and strategic investments in business to drive growth.

Meredith has a strong history of making dividend payouts for 66 consecutive years. Over the last decade, the company has boosted its dividend at an average annualized rate of 16% and raised dividend annually for 20 straight years.

A dividend hike primarily reflects Meredith’s sound financial position and healthy cash flow generating capabilities. Given the company’s shareholder friendly moves, it indeed remains an attractive opportunity for investors seeking both growth and income.

The quarterly dividend, after the hike, will come to 40.75 cents a share, up from the prior payment of 38.25 cents. The enhanced quarterly dividend will be payable on Mar 15, 2013, to shareholders of record as on Feb 28, 2013.

Other companies, which recently increased dividend, include Limited Brands, Inc. ( LTD - Analyst Report ) by 20% to 30 cents, The McGraw-Hill Companies, Inc. ( ) by 9.8% to 28 cents and Family Dollar Stores Inc. ( FDO - Analyst Report ) by 23.8% to 26 cents.

Currently, shares of Meredith retain a Zacks Rank #2 (Buy) as it continues to focus on bolstering advertising revenue, primarily in the digital space and enhancing online consumer transactions, especially magazine subscription orders. Moreover, the company’s focus on brand licensing, marketing services and e-Commerce is expected to drive revenues.