The Calgary-based company will pay 24 cents per share on Jan. 2 to shareholders of record as of Dec. 14, an increase of two cents per share.
Pason provides instrumentation systems to land-based and offshore drilling rigs.
Its revenue was $93 million in the three months ended Sept. 30, up five per cent from $88.7 million a year earlier.
But net income fell to $19.3 milllion or 23 cents per diluted share, down from $28.5 million or 35 cents per share.
In addition, Pason's EBITDA (earnings before interest, taxes, depreciation and amortizaion) fell 10 per cent to $47.6 million or 58 cents per share and funds flow from operations slipped one per cent to $40.8 million or 50 cents per share.