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Covidien Announces Dividend Increase of 11%

^{Published on 2010-09-23 04:12:23 - Market Wire}
 

DUBLIN--([ BUSINESS WIRE ])--Covidien plc (NYSE: COV) today announced that its Board of Directors has declared an 11% increase in the quarterly dividend rate, from $0.18 per ordinary share to $0.20 per ordinary share.

"The combination of this dividend increase, coupled with our decision announced last week to significantly accelerate our share repurchase program, underscores our commitment to balance cash return to shareholders with reinvestment in our business. We continue to target returning 25% to 40% of free cash flow to shareholders annually"

aThis marks the second dividend increase in the last twelve months, reflecting our good performance to date this year, and our confidence of continued strong earnings power and cash flow in the future,a said Richard J. Meelia, Chairman, President and CEO.

aThe combination of this dividend increase, coupled with our decision announced last week to significantly accelerate our share repurchase program, underscores our commitment to balance cash return to shareholders with reinvestment in our business. We continue to target returning 25% to 40% of free cash flow to shareholders annually,a Meelia added.

At the new rate, the annual dividend is $0.80 per ordinary share compared to the previous rate of $0.72 per ordinary share. The next quarterly dividend is payable on November 8, 2010, to shareholders of record on October 4, 2010.

ABOUT COVIDIEN

Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines in three segments: Medical Devices, Pharmaceuticals and Medical Supplies. With 2009 revenue of $10.3 billion, Covidien has 42,000 employees worldwide in more than 60 countries, and its products are sold in over 140 countries. Please visit [ www.covidien.com ] to learn more about our business.