Dividend Raise Pushes Covidien Higher - Analyst Blog

By
A A A
Share |

Shares of Covidien plc ( COV ) 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 share.

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 market growth.

Currently, COV carries a Zacks Rank #3 (Hold). While we remain on the sidelines regarding the company, other companies that are performing well include Alere Inc. ( ALR ), with a Zacks Rank #1 (Strong Buy), and Advaxis Inc. ( ADXS ) and Boston Scientific Corp. ( BSX ), both with a Zacks Rank #2 (Buy).



ADVAXIS INC (ADXS): Free Stock Analysis Report

ALERE INC (ALR): Free Stock Analysis Report

BOSTON SCIENTIF (BSX): Free Stock Analysis Report

COVIDIEN PLC (COV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ADXS , ALR , BSX , COV

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%
100%
100%
50%

Most Active by Volume

72,157,294
  • $61.36 ▼ 2.65%
56,535,455
  • $34.92 ▼ 3.78%
49,608,479
  • $4.42 ▼ 3.07%
49,328,445
  • $25.91 ▼ 3.18%
48,932,529
  • $16.37 ▲ 0.49%
38,182,422
  • $3.17 ▼ 1.55%
33,297,581
  • $73.86 ▲ 1.37%
32,790,375
  • $47.43 ▼ 1.02%
As of 4/23/2014, 04:07 PM