Medtronic announces new cash dividend increase

Medtronic has announced a 7.2 percent increase to its cash dividend, based on the company's strong recent financial performance.

The latest increase brings the quarterly amount to 26 cents (16.7 pence) per share for an annual total of $1.04, meaning the value of Medtronic's dividend has more than doubled over the last five years.

It also marks the 35th consecutive year of increased dividend payments for the firm, which generated operating cash flow of $4.4 billion during the 2012 fiscal year and repurchased 37 million shares of its common stock.

Medtronic remains committed to returning 50 percent of its free cash flow each year through dividends and share repurchases.

Omar Ishrak, chairman and chief executive officer of Medtronic, said: "This dividend increase demonstrates the confidence of the board of directors and management team in the strength of the company's cash flow generation and ability to generate value for our shareholders."

Last month, the firm published its financial report for the most recent fiscal quarter, during which it experienced a four percent year-on-year growth in revenue.