CORRECTED - Benetton to raise dividend to 0.40 euro/shr

Corrects net profit increase in second paragraph to 16 percent, not 7 percent

MILAN, March 19 (Reuters) - The board of Italian clothing retailer Benetton (BNG.MI) will propose a 2007 dividend of 0.40 euro per share, up from 0.37 euro the year before, the company said in a statement on Wednesday.

Benetton reported a 16 percent rise in its 2007 net profit last month and forecast like-for-like sales growth of between 6 and 8 percent this year.

(Reporting by Valentina Za; editing by Rory Channing)