The company declared a cash dividend of 21 cents, up from its earlier dividend of 18.1 cents.

Intel had earlier raised its dividend by 15 percent last November.

"Worldwide demand for computing continues to increase at a very rapid rate, putting Intel on track for revenue growth of over 20 percent this year," Chief Executive Paul Otellini said in a statement.

Intel posted first-quarter results ahead of Wall Street expectations and forecast second-quarter revenue growth that defied fears that the company was struggling to find its footing as personal computer sales growth wanes. 

In March, peer Qualcomm Inc raised its quarterly dividend by 13 percent. 

Shares of the company were up 1 percent at $23.27 in trading before the bell. The stock closed at $23.03 on Tuesday on Nasdaq.