Factors Influencing Dividend Increases Despite Cash Flow Declines

ABC Corporation has long maintained a progressive dividend policy, consistently increasing its dividend payments over the years. Recently, the company announced a substantial increase in its dividend per share. However, this increase comes at a time when analysts have forecasted a decline in the company's free cash flow due to increasing competition in its primary market.

Given this context, what factor primarily influenced the board’s decision to increase the dividend despite anticipated declines in free cash flow?