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.
“This 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”
"This 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," said Richard J. Meelia, Chairman, President and CEO.
"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," 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.