Covidien Ups Dividend 23% - Quick Facts

(RTTNews) - Irish healthcare products company Covidien plc's (COV) board has boosted its quarterly dividend rate by 23% to $0.32 per ordinary share, from $0.26 per ordinary share.

The company's Chairman, President and CEO said, "We remain committed to using our strong cash flow to fund business expansion, while returning at least 50% of our free cash flow to shareholders through dividends and share repurchases. In the last twelve months, we have exceeded this target, returning over 125% of our free cash flow to shareholders."

"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 this new rate, the full-year dividend is $1.28 per share, compared with the prior rate of $1.04 per share. The next quarterly dividend is payable on November 5, 2013, to shareholders of record on October 10, 2013.