By Melodie Warner
Tyco International Ltd.'s (TYC) board is recommending
shareholders approve a 6.7% increase to the company's annual
dividend.
The company intends to raise its annual dividend to 64 cents
from 60 cents if approved at the company's annual shareholders
meeting scheduled for March 6. Tyco would spend about $19 million
more a year for the higher payout.
"The dividend increase reflects our confidence in the strength
of Tyco's businesses and our ability to generate strong cash flow,"
said Chief Executive George Oliver.
The former industrial conglomerate spun off its North American
security business in September to create ADT Corp. (ADT). It also
split off, then merged its pipe-and-valve business with pump-filter
manufacturer Pentair Inc. (PNR). What remains of Tyco is focused on
fire-suppression systems for commercial buildings and safety
equipment.
Last month, the company reported it swung to fiscal
fourth-quarter loss on separation and other charges while revenue
declined 2.5%.
Shares were recently trading 1.2% lower at $29.14. The stock is
up 27% so far this year.
Write to Melodie Warner at melodie.warner@dowjones.com
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