SAN FRANCISCO (MarketWatch) — Google Inc. on Thursday reported a 61% jump in first-quarter profit on slightly higher-than-expected sales, and announced a surprise special dividend that would act as a stock split for company shareholders.

Google GOOG, +0.32% shares were slightly higher in late trading, after Chief Executive Larry Page announced the creation of a new class of non-voting stock, a move he described in a letter as “effectively a two-for-one stock split.” Read First Take on Google’s ‘token dividend.’

The Mountain View, Calif.-based Internet powerhouse reported a first-quarter profit of $2.89 billion, or $8.75 a share, compared with a profit of $1.8 billion, or $5.51 a share, for the year-earlier period.

Google’s Larry Page

Revenue was $10.65 billion, up from $8.58 billion. Adjusted revenue, minus total acquisition costs, was $8.14 billion. Adjusted profit was $10.08 a share.

Analysts were expecting a profit of $9.64 a share, on revenue of $8.1 billion, according to a consensus survey by FactSet Research.

In a statement, Page cited “tremendous momentum from the big bets we’ve made in products like Android, Chrome and YouTube.”

Google said paid clicks, the number of times Internet users click on the company’s advertising generating revenue, rose 39% from the year-earlier period.

However, cost-per-clicks, the prices paid for Google’s online advertising, fell 12% year-over-year.

Shares of Google were up a fraction in after-hours trading.

Google’s new stock structure

In a letter, Page said the creation of the non-voting stock class was “effectively a two-for-one stock split — something many of our investors have long asked us for.”

“These nonvoting shares will be available for corporate uses, like equity-based employee compensation, that might otherwise dilute our governance structure,” he added. Read how stock split helps founders' retain control.

Referring to his co-founder Sergey Brin, Page noted that in September 2009, he and Brin “published plans to sell a modest percentage of our overall stock, ending in 2015.”

“We are currently halfway through those plans and we don’t expect any changes to that, certainly not as the result of this new potential class,” Page wrote. “We both remain very much committed to Google for the long term.”

In a note, Citigroup analyst Mark Mahaney said, “All in, we view Google’s results as fundamentally improving,” noting how “margins seem to be stabilizing after the 2011 investment trough.”

However, BGC Partners analyst Colin Gillis highlighted the decline in cost per clicks, at a time when paid clicks are rising.

“The fact of the matter is advertisers are valuing clicks less,” he said in an interview.