UPDATE 1-America Movil to pay dividend, hike buy back fund

(Adds previous dividend for comparison)

MEXICO CITY, March 11 (Reuters) - Mexico's America Movil, Latin America's largest cell phone operator, said on Tuesday it will pay a 0.26 peso per share dividend and plans to increase its buy-back fund by 40 billion pesos ($371 million).

The dividend payout by America Movil (AMX.N: Quote, Profile, Research) (AMXL.MX: Quote, Profile, Research), controlled by Mexican billionaire Carlos Slim, compares with the 0.20 peso per share dividend last year.

America Movil also paid an extraordinary dividend of 1 peso per share last year, a payout of more than $3 billion.

The company has repeatedly said that in the absence of major acquisitions in Latin America, where it battles for supremacy with Spain's Telefonica (TEF.MC: Quote, Profile, Research), it will pay dividends to shareholders.

($1 = 10.7725 pesos)

(Reporting by Chris Aspin; editing by Leslie Gevirtz)