(Adds background, Nissan comment)
TOKYO, June 23 (Reuters) - Nissan Motor Co , Japan's second-biggest auto maker by unit sales, said on Wednesday an aggressive sales and profit expansion plan should mean a 67 percent higher dividend in the year to March 2008 than this year.
Nissan, which in April reported a 12 percent jump in operating profit for the past year, told shareholders it aimed to pay an annual dividend of 40 yen in the 2007/08 business year, up from a planned 24 yen in the current year to March 31, 2005.
"Our performance continues to be recognised in the market through share price appreciation," Nissan President Carlos Ghosn said in a statement.
"We want to recognise the trust and confidence of our shareholders through an attractive, predictable dividend policy."
More Japanese companies are moving to raise dividends, breaking away from their traditional policy of making "stable", consistently low payments, as shareholders demand a piece of the wealth after years of kowtowing to management.
One-third of listed firms resumed or raised dividends in the year ended in March, increasing total payouts by 20 percent.
The dividend yield on Nissan's shares is expected to climb to 2.1 percent this business year, based on the current stock price of 1,140 yen. The average yield for shares in the Nikkei 225 average is forecast to be around 0.96 percent.
Nissan, owned 44 percent by France's Renault SA , said in April it aimed to boost global sales by 37 percent to 4.2 million units by the 2007/08 business year as it expands into untapped regions and segments.
The company, Japan's third-largest car maker in terms of the value of its group sales, plans to roll out 28 new models during the three-year period.
Under the leadership of Renault executive Ghosn, Nissan has gone from near bankruptcy in 1999 to a highly profitable company, slashing jobs, cutting debt and overhauling its brand image with new designs.
By 0544 GMT, shares in Nissan were up 1.25 percent at 1,134 yen, while the Nikkei was down 0.08 percent.