Thursday, September 23, 2010

Covidien Announces Dividend Increase of 11%

DUBLIN, Thursday, September 23rd 2010 [ME NewsWire]:

(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.


“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.


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.


For media enquiries, please contact:
Covidien
Eric Kraus, 508-261-8305
Senior Vice President
Corporate Communications
eric.kraus@covidien.com

Coleman Lannum, CFA, 508-452-4343
Vice President
Investor Relations
cole.lannum@covidien.com


Bruce Farmer, 508-452-4372
Vice President
Public Relations
bruce.farmer@covidien.com



Brian Nameth, 508-452-4363
Director
Investor Relations
brian.nameth@covidien.com

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