) rose 0.30% following the announcement of its rise in quarterly
dividend payment. The manufacturer of medical devices and
supplies has declared a 23% rise in dividend to 32 cents from 26
cents per share, which is payable on Nov 5 to shareholders of
record as on Oct 10, 2013.
Covidien follows a policy of continuous rise in dividends in
order to soothe its investors. The company raised its quarterly
dividend by 15.6% to 26 cents per share for fiscal 2013 from 22.5
cents in fiscal 2012.
The recent raise in dividend push the annualized dividend payment
by 23.1% to $1.28 per share from $1.04 in fiscal 2013. COV plans
to make its dividend payments to be at least 35% of its adjusted
earnings per share. This means an annual dividend of $1.49 or 37
cents per quarter given its 2012-adjusted earnings of $4.26 per
Covidien posted flat adjusted earnings per share from continuing
operations of 91 cents for the third quarter of fiscal 2013, on a
year over year basis. However, earnings beat the Zacks Consensus
Estimate by a penny.
Revenues in the quarter increased 3% (up 5% in constant currency)
to $2,578 million, driven by higher sales in the Medical Devices
segment. Revenues were slightly below the Zacks Consensus
Estimate of $2,587 million.
On a geographic basis, revenues in the U.S. market decreased 3%
to $1,299 million while international revenues climbed 10% (up
14% in constant currency) to $1,279 million, driven by emerging
Currently, COV carries a Zacks Rank #3 (Hold). While we remain on
the sidelines regarding the company, other companies that are
performing well include
), with a Zacks Rank #1 (Strong Buy), and
Boston Scientific Corp.
), both with a Zacks Rank #2 (Buy).
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