Medtronic Announces Double-Digit Increase in Cash Dividend; Reaches 40 Percent Payout Ratio
June 24 2016 - 6:45AM
DUBLIN - June 24, 2016 - The
board of directors of Medtronic plc (NYSE: MDT) today approved a 13
percent increase in its quarterly cash dividend, raising the
quarterly amount to $0.43 per ordinary share. This would translate
into an annual amount of $1.72 per ordinary share. Today's
announcement marks the 39th 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 an 18 percent compounded annual growth rate over the
past 39 years.
Today's increase also brings Medtronic's dividend
per share payout ratio to 40 percent of prior fiscal year non-GAAP
diluted earnings per share after adjusting for the impact of the
extra sales week in fiscal year 2016.
"Today's double-digit increase in our dividend
reflects the confidence the board and our management team has in
Medtronic's ability to deliver consistent and sustainable growth,
as well as to generate significant and increasingly accessible free
cash flow," said Omar Ishrak, Medtronic chairman and chief
executive officer. "We are deploying considerable amounts of
capital strategically, consistently, and with discipline to provide
attractive returns for our shareholders. This includes our focus on
delivering dependable, long-term growth in our dividend."
Medtronic remains committed to returning a minimum
of 50 percent of its free cash flow to its shareholders through
dividends and share repurchases. The company also continues to
target an A credit profile. The dividend is payable on July 27,
2016, to shareholders of record at the close of business on July 8,
2016. Starting with this dividend payment, Medtronic now expects
that its dividend will be treated for U.S. tax purposes as a
distribution of earnings and not a return of capital. Additional
information about the tax treatment of the dividend is available at
investorrelations.medtronic.com.
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 85,000 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 OMX Corporate Solutions on
behalf of NASDAQ OMX 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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