8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

______________

FORM 8-K

______________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  May 17, 2012

ASHLAND INC.

(Exact name of registrant as specified in its charter)

Kentucky

(State or other jurisdiction of incorporation)

1-32532	20-0865835
(Commission File Number)	(I.R.S. Employer Identification No.)

50 E. RiverCenter Boulevard

P.O. Box 391

Covington, Kentucky  41012-0391

Registrant’s telephone number, including area code (859) 815-3333

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.  Other Events

Today, Ashland Inc. (the “Company”) announced that the Company’s Board of Directors intends to increase the annual dividend to 90 cents per share from its current annual rate of 70 cents per share, commencing with the June 15, 2012 dividend payment.

The increase in annual dividend is discussed further in the news release attached hereto as Exhibit 99.1 and incorporated by reference herein.

Item 9.01.  Financial Statements and Exhibits

(d)	Exhibits
	Exhibit	Description
	99.1	News Release dated May 17, 2012.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ASHLAND INC.
	(Registrant)
May 17, 2012	/s/ Lamar M. Chambers
	Lamar M. Chambers
	Senior Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit	Description
99.1	News Release dated May 17, 2012.

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EX-99.1

EXHIBIT 99.1

News Release     

FOR IMMEDIATE RELEASE

May 17, 2012

Ashland Inc. board increases annual dividend 29 percent

COVINGTON, Ky. – The board of directors of Ashland Inc. (NYSE: ASH) has declared a quarterly cash dividend of 22.5 cents per share on the company’s common stock. This represents a 29 percent increase from the previous quarterly dividend and is equivalent to an annual dividend of 90 cents per share. The dividend is payable June 15, 2012, to shareholders of record at the close of business on June 1, 2012. As of March 31, 2012, there were 78,467,329 shares of Ashland common stock outstanding.

“This dividend increase reflects the board’s continued confidence in the strategic direction of the company, as well our ability to generate cash and deliver strong financial performance for shareholders,” said James J. O’Brien, Ashland chairman and chief executive officer. “Since 2009, we have tripled our annual dividend, a clear sign that Ashland’s transformation into a specialty chemical company has yielded tangible benefits for our shareholders and provided a strong platform for continued growth in the years ahead.”

In more than 100 countries, the people of Ashland Inc. (NYSE: ASH) provide the specialty chemicals, technologies and insights to help customers create new and improved products for today and sustainable solutions for tomorrow. Our chemistry is at work every day in a wide variety of markets and applications, including architectural coatings, automotive, construction, energy, food and beverage, personal care, pharmaceutical, tissue and towel, and water treatment. Visit ashland.com to see the innovations we offer through our four commercial units – Ashland Specialty Ingredients, Ashland Water Technologies, Ashland Performance Materials and Ashland Consumer Markets.

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C-ASH

FOR FURTHER INFORMATION:

Media Relations:

Gary Rhodes

+1 (859) 815-3047

glrhodes@ashland.com

Investor Relations:

David Neuberger

+1 (859) 815-4454

daneuberger@ashland.com