Medtronic Announces 7 Percent Increase in Cash Dividend
June 23 2017 - 6:45AM
40th Consecutive
Year of Dividend Increases;
Board Authorizes $5 Billion for Share Repurchases
DUBLIN - June 23, 2017 - The
board of directors of Medtronic plc (NYSE: MDT) today approved a 7
percent increase in its quarterly cash dividend, raising the
quarterly amount to $0.46 per ordinary share. This would translate
into an annual amount of $1.84 per ordinary share, or a dividend
per share payout ratio of 40 percent of prior fiscal year non-GAAP
diluted earnings per share. Today's announcement marks the 40th
consecutive year of an increase in the dividend payment for
Medtronic, a constituent of the S&P 500 Dividend Aristocrats
index. Including today's increase, Medtronic's dividend per share
has nearly quadrupled over the past decade and has grown at a 17
percent compounded annual growth rate over the past 40 years.
"Today's increase in our dividend demonstrates the
confidence of the board and our management team in the strength of
the company's cash flow generation and the ability to generate
value for our shareholders," said Omar Ishrak, Medtronic chairman
and chief executive officer. "We are committed to returning a
minimum of 50 percent of our free cash flow each year through
dividends and share repurchases, balancing the return of cash to
our shareholders with disciplined reinvestment in our business to
drive sustainable growth."
The dividend is payable on July 26, 2017, to
shareholders of record at the close of business on July 7, 2017.
Additional information about the tax treatment of the dividend is
available at investorrelations.medtronic.com.
In addition to increasing the dividend, the board
today authorized the expenditure of up to $5.0 billion for new
share repurchases. The authorization replaces the previous 2015
repurchase authorization to redeem up to an aggregate number of
ordinary shares. There is no specific time-period associated with
today's repurchase authorization.
About Medtronic
Medtronic plc (www.medtronic.com), headquartered in Dublin,
Ireland, is among the world's largest medical technology, services
and solutions companies - alleviating pain, restoring health and
extending life for millions of people around the world. Medtronic
employs more than 88,000 people worldwide, serving physicians,
hospitals and patients in approximately 160 countries. The company
is focused on collaborating with stakeholders around the world to
take healthcare Further, Together.
Any forward-looking statements
are subject to risks and uncertainties such as those described in
Medtronic's periodic reports on file with the Securities and
Exchange Commission. Actual results may differ materially from
anticipated results.
-end-
Contacts:
Fernando Vivanco
Public Relations
+1-763-505-3780
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Medtronic plc via Globenewswire
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