Press Release
| Covidien Announces Dividend Increase |
“This increase reflects our good performance to date in 2013 and our
confidence in further growth,” said José ( “As we have previously announced, the Company intends to continue to increase its dividend and is targeting a dividend payout ratio -- dividends paid per share divided by adjusted earnings per share -- in excess of 35% over time,” Almeida added. "Because of this, we expect dividends to increase at or above the rate of earnings growth for the next several years."
At the new rate, the annual dividend is
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NON-GAAP FINANCIAL MEASURES
This press release contains a financial measure, free cash flow, which
is considered a “non-GAAP” financial measure under applicable
This non-GAAP financial measure should be considered supplemental to and
not a substitute for financial information prepared in accordance with
generally accepted accounting principles. The Company’s definition of
this non-GAAP measure may differ from similarly titled measures used by
others. The Company defines free cash flow as net cash provided by
operating activities less capital expenditures. For the twelve months
ended FORWARD-LOOKING STATEMENTS
Any statements contained in this communication that do not describe
historical facts may constitute forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on our
management's current beliefs and expectations, but are subject to a
number of risks, uncertainties and changes in circumstances, which may
cause actual results or Company actions to differ materially from what
is expressed or implied by these statements. The factors that could
cause actual future results to differ materially from current
expectations include, but are not limited to, our ability to effectively
introduce and market new products or keep pace with advances in
technology, the reimbursement practices of a small number of large
public and private insurers, cost-containment efforts of customers,
purchasing groups, third-party payors and governmental organizations,
intellectual property rights disputes, complex and costly regulation,
including healthcare fraud and abuse regulations and the Foreign Corrupt
Practices Act, manufacturing or supply chain problems or disruptions,
rising commodity costs, recalls or safety alerts and negative publicity
relating to Source:
Covidien plc |