INTERVIEW-UPDATE 1-Kao says may raise dividend for 2009/10

* Aims to get back to revenue growth in 2009/10

* Targets 5-10 percent market share in China

* Expects Chinese market to overtake Japan by 2020

* Still eyeing U.S. and European beauty-care brands

By Yumiko Nishitani and Ritsuko Shimizu

TOKYO, May 14 (Reuters) - Kao Corp (4452.T), Japan's largest maker of toiletries, said on Thursday it could pay a higher dividend for this business year if the economic outlook improves.

The maker of Biore skin care and Attack detergent products had raised dividends for 19 straight years up to last year, but said last month it would pay out 56 yen per share this financial year, unchanged from last year, as it forecast a 13 percent drop in net profit.

"I have not given up hope of paying a higher dividend this financial year, but we need to be careful given ongoing economic uncertainties," Kao President Motoki Ozaki told Reuters in an interview.

Kao may make a decision on its dividend by the time it reports its half-year results, he said.

The company expects a 5 percent drop in revenue due to a stronger yen and the weak economy, but Ozaki said it aims to get back to revenue growth in the year to March 2011.

"Our market has stayed relatively resistant to economic pressure, and given for instance a 1-2 percent fall in overall demand, we can still aim for revenue growth by using our product strategy and other means" next fiscal year, he said.

BETTING ON CHINA

Kao has lagged behind U.S. players such as Procter & Gamble (PG.N) and local rival Shiseido (4911.T) in expanding its presence in the international arena, including Asia.

Kao Vice President Norihiko Takagi told Reuters in December the company aimed to have as much as 60 percent of its revenue coming from overseas by 2020 compared with about 25 percent now.

Ozaki reiterated that target, saying that despite the recent strong yen Kao aims to achieve this goal by aggressive advertising and sales promotion campaigns in Asia even if it loses more money in the region in the near term.