Adds shares, analyst comment paragraphs 6-7

JOHANNESBURG, Feb 19 (Reuters) - AngloGold Ashanti AU.N is boosting payouts to investors, it said on Wednesday, after its profit surged to $954 million last year from a loss of $46 million in the prior year, buoyed by the precious metal's rally to record highs.

Shares in the company however fell as much as 7.4% in early trading in New York.

A sharp increase in planned spending at projects, including at the Sukari mine in Egypt which the company recently bought from Centamin, seems to have unnerved investors, Nedbank Group analyst Arnold Van Graan said.

"This appears to have a negative light on the results and outlook," Van Graan said in a note.

The gold producer raised its output forecast for this year to between 2.9 million ounces and 3.2 million ounces from about 2.7 million ounces produced last year. AngloGold said it is raising output after buying Centamin assets last year.

The company declared a final dividend of 91 U.S. cents per share, or about $439 million, against 19 U.S. cents a share in the prior year. The miner said it was changing its dividend policy to target a 50% payout of free cash flow.

CEO Alberto Calderon said the gold price rally had given AngloGold the strongest balance sheet position in more than a decade, and it is "able to pass on those benefits to shareholders in a more generous dividend policy".

Peers, including Barrick Gold ABX.TO, have also increased returns to investors.

AngloGold's stock is still up 67% in a year, driven by the move of its primary listing to New York, as well as the bullion rally, LSEG data shows.

(Reporting by Felix Njini in Johannesburg and Nelson Banya in Harare. Editing by Jane Merriman, Barbara Lewis and Jan Harvey)

((Felix.Njini@ThomsonReuters.com; Reuters Messaging: Felix.Njini@ThomsonReuters.com))