By Anna Prior
Mead Johnson Nutrition Co. (MJN) said its board has boosted its
dividend by 10%, a move the nutritional products maker said
reflects the company's ability to generate strong cash flow.
Mead Johnson's quarterly dividend rate will climb to 37.5 cents
a share from 34 cents, for an annualized dividend of about $1.50 a
share, the company said.
The move marks the fifth consecutive year in which the company
has boosted its dividend at a double-digit rate, Mead Johnson
Chairman Jim Cornelius said, adding that the decision is a
reflection of the board's commitment to return cash to
shareholders.
The company, which makes nutritional products such as Enfamil
baby formula, has seen improved sales in recent years, aided by
growth in emerging and developing markets. However, high commodity
costs have pressured its margins and bottom line.
Last month, the company said its fourth-quarter profit improved
by 14% amid stronger sales in Asia and Latin America.
Shares rose 20 cents to $81.75 in recent after-hours trading.
Through Friday's close, the stock has risen 8.9% in the last 12
months.
Write to Anna Prior at anna.prior@wsj.com
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