NEW YORK -- CBS Corp. on Thursday hiked its dividend for the second time this year as president and CEO Leslie Moonves told shareholders at the firm's annual meeting here that it has gotten off to "a terrific start" since it split from Viacom Inc. at the beginning of the year.

Asked by a shareholder about a legal settlement between CBS and shock jock Howard Stern, Moonves referred the question to executive vp and general counsel Louis Briskman, who said: "The settlement is not signed. If we sign it, we will make an announcement promptly."

Late Wednesday, it emerged that a Stern-CBS settlement was imminent (HR 5/25). However, given the Memorial Day weekend, the pact may not be announced until next week.

CBS said it is raising its quarterly dividend from 16 cents per share to 18 cents per share, a 12.5% increase that marked the second dividend boost. Overall, the company has increased its dividend 29% this year, Moonves told investors, saying that is "a reflection of how confident we are" in meeting financial goals. He again reiterated his hope that the dividend would keep growing over time.

The 50-minute shareholder meeting, the first one for CBS as a stand-alone company, mainly was a straight-forward affair despite some calls for changes in certain areas.

A shareholder proposal for a recapitalization of CBS to give all investors one vote per share, which would challenge chairman Sumner Redstone's controlling stake in the company, was scheduled to be discussed at the meeting. However, the debate and related shareholder vote didn't happen as the proponent was not present.

Moonves also reiterated that adding Katie Couric will help CBS News improve its offerings and profitability, providing "significant upside" for the operation.

Moonves' comments came as about 30 members of Writers Guild of America East handed out leaflets outside the meeting in protest the fact that talks over the WGA-CBS national agreeent have been stalled since April 2005. WGAE complained that CBS wants to eliminate guild protection for the newswriters and producers; and the next negotiating session has been set for June 5.

Moonves, however, got a big dose of appreciation at the meeting Thursday.

Redstone lauded his great work, and a shareholder suggested CBS give Moonves a 5% stake or so to make sure he stays in his post for the long term. "That was my brother," Moonves joked.

"Les is not going anywhere," Redstone promised shareholders, to which the CEO added: "I'm still a young man." Redstone then quipped: "And I'll go after him."

During a presentation to shareholders, Moonves on Thursday touted the strength of CBS' TV business and lauded its continued push into various forms of new-media and alternative distribution platforms. "In this new-media age, content is truly king," Redstone said in a slight modification of his usual mantra.

Overall, Redstone echoed Moonves in saying that after "an incredible start," CBS is "solidly on track to delivering its operational and financial goals for 2006."

What if Viacom and CBS, both of which Redstone controls, ever end up competing for something, one shareholder asked Thursday. That would only be "good for the two companies," the chairman said, "especially when you have strong competitors like Les Moonves."

CBS Class B shares closed up 3.5% at $26.30.