* Raises div to C$0.27 from C$0.2475
* Raises capital budget by C$70 mln
May 20 (Reuters) - Canadian Pacific Railway Ltd (CP.TO) said it raised its quarterly dividend by 9 percent and increased its 2010 capital spending budget by C$70 million ($65.7 million).
Canada's second biggest railway raised its dividend to 27 Canadian cents a share, from 24.75 Canadian cents a share, payable on July 26, to shareholders of record July 25.
The company said its 2010 capital spending budget now ranges between $750 million to $800 million.
Shares of the company closed at C$54.80 Thursday on the Toronto Stock Exchange. ($1=1.066 Canadian dollar) (Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair) (email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))