DUBLIN--(BUSINESS WIRE)--Covidien plc (NYSE: COV) today announced that its Board of Directors has declared a 12.5% increase in the quarterly dividend rate, from $0.20 per ordinary share to $0.225 per ordinary share.
"This increase reflects our good performance to date in 2011, our confidence in our future growth, sustainable cash flow and our commitment to enhance shareholder value," said José (Joe) E. Almeida, President and CEO.
"The combination of this dividend increase, coupled with our Board's decision announced last month to authorize a new $2 billion share repurchase program, underscores our commitment to balance cash return to shareholders with reinvestment in our business. In the last twelve months, we have returned more than 50% of our free cash flow to shareholders, well above our target of 25% to 40%," Almeida added.
At the new rate, the annual dividend is $0.90 per ordinary share compared to the previous rate of $0.80 per ordinary share. The next quarterly dividend is payable on November 4, 2011, to shareholders of record on October 13, 2011.
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 2010 revenue of $10.4 billion, Covidien has 41,000 employees worldwide in more than 65 countries, and its products are sold in over 140 countries. Please visit www.covidien.com to learn more about our business.
NON-GAAP FINANCIAL MEASURES
This press release contains a financial measure, free cash flow, which is considered a "non-GAAP" financial measure under applicable Securities & Exchange Commission rules and regulations.
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 these non-GAAP measures may differ from similarly titled measures used by others. The Company defines free cash flow as net cash provided by continuing operating activities less capital expenditures. For the twelve months ending June 2011, net cash provided by continuing operating activities of $2,319 million less capital expenditures of $431 million resulted in free cash flow of $1,888 million.
Contacts
Covidien plc
Eric Kraus, 508-261-8305
Senior Vice President
Corporate Communications
eric.kraus@covidien.com
or
Bruce Farmer, 508-452-4372
Vice President
Public Relations
bruce.farmer@covidien.com
or
Coleman Lannum, CFA, 508-452-4343
Vice President
Investor Relations
cole.lannum@covidien.com
or
Todd Carpenter, 508-452-4363
Director
Investor Relations
todd.carpenter@covidien.com