UPDATE 1-Iamgold raises dividend, sees higher gold output

* To boost annual dividend by 33 pct

* Expects gold output to rise about 20 pct in 2011
(In U.S. dollars unless noted)

TORONTO, Dec 9 (BestGrowthStock) – Iamgold Corp (IMG.TO: ) raised its
annual dividend payment by 33 percent on Thursday, and forecast
increased gold output in 2011.

The Toronto-based mid-tier producer said its 2011 gold
output is expected to rise about 20 percent above its current
forecast production for 2010. Iamgold has forecast gold
production of between 940,000 and 970,000 ounces for 2010.

The company expects to produce between 1.1 million and 1.2
million ounces in 2011, at cash costs of between $565 and $595
an ounce.

Iamgold said it has now increased its annual dividend
payment to 8 cents a share from 6 cents a share. The annual
dividend will be paid on Jan. 14, to shareholders of record as
of the close of trading on Dec. 24.

The company said it plans to pay its dividend semi-annually
in the future.

($1= $1.01 Canadian)
(Reporting by Euan Rocha; editing by Rob Wilson)

UPDATE 1-Iamgold raises dividend, sees higher gold output