(Reuters) - New Zealand dairy firm Fonterra said on Monday it has upgraded its dividend payout policy and will now pay shareholders 60% to 80% of its earnings, compared with an average of 50% for the previous five years.

The company is also targeting a higher average return on capital, raising it to 10-12%, up from 9-10% earlier.

"Fonterra is in a strong position, delivering results well above its five-year average, which puts it in a position to think about the next evolution of its strategic delivery," said CEO Miles Hurrell.

Last week, the Auckland-based company reported earnings from continuing operations for fiscal 2024 of 70 NZ cents per share, hitting the top end of its outlook range.

It declared a final dividend of 25 NZ cents per share as well as a special dividend of 15 NZ cents apiece.

The company said it intends to make a "significant" capital return to shareholders upon divestment of its consumer business.

Earlier this year, it had flagged a full or partial sale of its global consumer unit to free up capital.

(Reporting by Ayushman Ojha; Editing by William Maclean and Leslie Adler)