Hill-Rom announces new dividend increase

Hill-Rom has announced that its board of directors has agreed to increase the company's dividend for the second quarter of the 2014 fiscal year by 11 percent.

The new $0.1525 (0.0917 pounds) per share dividend will be payable on March 31st 2014 to shareholders of record as of the close of business on March 20th. The latest increase brings the annualised dividend rate per share to $0.61 from $0.55.

It means the medical technology firm's dividend is now up by 22 percent from the quarterly rate seen one year ago, a statistic that Hill-Rom believes is testament to the robust performance of the company over the last 12 months.

Jay Saccaro, senior vice-president and chief financial officer of Hill-Rom, said: "This increase is consistent with our commitment to enhancing shareholder value by returning a substantial portion of operating cash flow to our shareholders."

This week, the company also announced the appointment of William Dempsey – a director at Landauer, Nordion and Hospira – as the newest member of its board of directors.