DUBLIN, Ireland--(BUSINESS WIRE)--Sep. 17, 2014--
plc (NYSE: COV) today announced that its Board of Directors has
declared a 13% increase in the quarterly dividend rate, from $0.32 per
ordinary share to $0.36 per ordinary share.
“This increase is consistent with our Board’s stated objective of moving
to a higher payout ratio and returning free cash flow to shareholders,”
said José E. Almeida, chairman, president and CEO, Covidien. “In the
last 12 months we have returned 100 percent of our free cash flow1
through dividends and share buybacks, well above our ongoing target of
“This is our sixth year in a row of double-digit dividend increases,
reflecting the company’s continued strong performance to date and our
confidence in our ability to execute our strategy,” Almeida added.
At the new rate, the annual dividend is $1.44 per ordinary share
compared to the previous rate of $1.28 per ordinary share. The next
quarterly dividend is payable on November 6, 2014, to shareholders of
record on October 7, 2014.
Covidien is a global health care leader that understands the challenges
faced by providers and their patients and works to address them with
innovative medical technology solutions and patient care products.
Inspired by patients and caregivers, Covidien’s team of dedicated
professionals is privileged to help save and improve lives around the
world. With more than 38,000 employees, Covidien operates in 150-plus
countries and had 2013 revenue of $10.2 billion. To learn more about our
business visit www.covidien.com
or connect with us on Twitter.
1 Covidien defines free cash flow as net cash from operating
activities less capital expenditures.
Peter Lucht, 508-452-4168
Lannum, CFA, 508-452-4343