Defense contractor Raytheon Co. late Wednesday announced a 21 percent rise in its annual dividend and the repurchase of up to $2 billion of additional common shares.

The company's annual payout rises to $1.50 a share from $1.24. The maker of missiles and radar systems said its board authorized a quarterly dividend of 37.5 cents a share, payable on April 29 to shareholders of record as of April 6.

Raytheon shares edged down 14 cents to $57.11 on the New York Stock Exchange on Wednesday. They have risen about 11 percent so far this year.