TORONTO – George Weston Ltd. (TSX:WN) is raising its quarterly dividend by about 5.6 per cent even though the bakery and grocery company’s profit has been squeezed.

Weston’s net earnings attributable to shareholders fell to $160 million or $1.14 per share in the 16 weeks ended Oct. 6.

That’s down from $264 million or $1.94 per share of net earnings a year earlier.

Weston fared better during the quarter on adjusted earnings that exclude some items but says 2012 full-year adjusted earnings will be likely lower than last year.

Adjusted earnings for the third quarter of this year was equal to $1.49, up five cents per share from last year and higher than a consensus analyst estimate.

Weston says it expects its full-year adjusted earnings will be lower than last year due to weaker earnings from its Loblaws division.

Nevertheless, Weston says the quarterly dividend will rise by two cents per share to 38 cents.

The Toronto-based company is parent of the Loblaw (TSX:L) grocery business and the Weston Foods baking business.