Georgia-Pacific ( GP ) on Thursday announced a 40% increase in its quarterly dividend, raising the payout to 17.5 cents a share from 12.5 cents a share.

"This dividend increase directly reflects our confidence in the overall stability of Georgia-Pacific's earnings base," the company said in a statement.

Georgia-Pacific, whose products include Brawny paper towels and Dixie Cups, said the dividend is payable Feb. 24 to shareholders of record Feb. 14.

Earlier this week, the Atlanta-based paper products company reported net income of $134 million, or 51 cents a share, excluding items, in its fourth quarter, beating analysts estimates.

Shares closed at $34.20 Wednesday.