French bottled water and dairy firm Danone has confirmed that it will pay a 2008 dividend of EUR1.20 per share.

Danone, which confirmed the payout today (24 April), said that shareholders would have the option of receiving payment in cash or exchanging their dividen payment for new shares in the company. A payment date has been set for 27 May.

Those wishing to take out new shares will be able to do so between 30 April and 18 May, said the firm.

Danone said this month that net sales rose by 1% to EUR3.76bn (US$4.9bn) for the three months to the end of March, as a rise in the firm's nutrition business offset declines in the bottled water and dairy divisions.

"Apart from water, where the jury is still out, I am completely convinced that Danone's product propositions are rock solid," said independent analyst James Amoroso, following the results statement.