NEW YORK (CNN/Money) - Philip Morris named its CEO, Louis Camilleri, chairman of the company and also said it will raise its dividend by more than 10 percent.

Shares of Philip Morris (MO: up $1.40 to $49.30, Research, Estimates), the world's largest tobacco company, rose nearly 3 percent in trading on the New York Stock Exchange.

The increase brings the company's quarterly dividend to 64 cents per share from 58 cents, and it is payable Oct. 10 to shareholders of record as of Sept. 16.

The company's board has made a tradition of raising the payout every year at its August meeting, although it missed an increase in 1997 in an effort to reserve cash to pay its share of a settlement with U.S. states over tobacco-related public health claims.

Camilleri will replace Geoffery Bible as chairman. Bible will retire Aug. 31, after reaching mandatory retirement age, Philip Morris said. The Dow component also named Mathis Cabiallavetta to its board, replacing William Webb, who is also retiring. Cabiallavetta is vice chairman of Marsh & McLennan Cos. and chairman of MMC Global Development.  

--from staff and wire reports