Covidien announces new dividend increase

Covidien has announced a quarterly dividend increase of 16 percent, bringing the value of its ordinary shares to $0.26 (0.16 pounds) from $0.225.

This latest increase brings the company's annual dividend to $1.04 per ordinary share, with the next quarterly payment to be made on November 5th 2012 to shareholders of record on October 11th.

According to the medical technology firm, this dividend increase reflects its strong performance thus far in 2012, as well as its commitment to balancing cash return to shareholders with reinvestment in its business.

In the last year, Covidien has returned 83 percent of its free cash flow to shareholders through dividends and stock buybacks, with further increases planned in the coming months.

Jose Almeida, chairman, president and chief executive officer, said: "Both the board and our senior management team are confident that our expected cash flow generation over the next several years will support future dividend increases and a higher dividend payout ratio."

Earlier this month, the company launched its new Viance Crossing Catheter and Enteer Re-entry System in Europe, the US and a number of other key markets.