The board of directors of First Maryland Bancrop has approved an increase in the company's annual dividend rate.

The new annual rate of $1.32 a share on its common stock, or 33 cents a share on a quarterly basis, is effective with the current quarterly dividend to be paid Jan. 2 to shareholders of record Dec. 12.

Other recent dividend action includes the following:

Madison National Bank of Washington declared a regular semi-annual cash dividend of 75 cents a share, payable Jan. 2 to shareholders of record Dec. 19.

United Virginia Bankshares Inc. declared a regular quarterly dividend on its common stock of 40 cents a share, payabel Jan. 30 to shareholders of record Dec. 30.

National Bank of Washington directors voted a regular quarterly dividend of 50 cents a share, payable Jan. 2 to stockholders of record Dec. 10.

First American Bank of Virginia declared a fourth-quarter dividend of 50 cents a share, payable Dec. 31 to shareholders of record Dec. 15.

The Washington Real Estate Investment Trust has declared a quarterly dividend of 68 cents a share, payable Dec. 31 to shareholders to record Dec. 5.

Citizens Bank & Trust Co. of Maryland has approved a quarterly cash dividend of 70 cents a share, payable Dec. 31 to shareholders of record Dec. 12.

American Telephone & Telegram Co. declared regular quarterly dividiends on the company's common shares and three publicly held preferred stock issues.

A dividend of $1.25 on the company's common stock will be paid Jan. 2 to shareholders of record Nov. 26. The three preferred dividends were: a $1 share dividend on the company's $4 convertible preferred issue; a 93 1/2 cents a share dividend on the $3.74 nonconvertible preferred issue; and a dividend of 91 cents a share on the $3.64 non-convertible preferred issue. All three dividends are payable Feb. 1 to shareholders of record Dec. 31.