The dividend at the 75% higher rate is payable June 30 to stock of record June 17.

Based on market conditions, the company said, share repurchases would be made in the open market and in privately negotiated transactions at the discretion of management. CEO Michael W. Lamach, who is also chairman and president of Ingersoll Rand, said the company was "on track to solidify our balance sheet through the reduction of debt." He added that "the strong cash flow delivered through ongoing productivity and margin improvement" was helping the company "move to the next phase of our communicated capital allocation strategy," allowing the dividend hike.??

Ingersoll-Rand plans to release first-quarter financial results on April 21, and Lamach and CFO Steven R. Shawley, a senior vice president, will host a conference call at 10 a.m. that day, after the results are announced.

Ingersoll-Rand makes Trane air conditioners, among other products, and is based in Swords, Ireland.

The company had 329.6 million shares outstanding as of Feb. 11, according to data compiled by Bloomberg New. At yesterday's closing price, a $2 billion repurchase would amount to about 41.8 million shares.