Healthcare products company, Covidien plc (COV) reported on Thursday that its board has approved a $3 billion share buy back program.
The buy back plan will add to its $2 billion plan from August 2011, which has $425 million remaining.
In the past year, the company has distributed nearly all of its free cash flow back to its shareholders through dividends and share buybacks totaling $1.75 billion. This is way above the company’s goal of returning at least 50% of its free cash flow to shareholders.
The company also reported that its board has declared a quarterly dividend of 26 cents per share which will be payable on May 3 to shareholders of record on April 4.
Covidien shares were mostly flat during premarket trading Thursday. The stock has increased 21.5% in the past year.
The Bottom Line
Shares of Covidien plc (COV) have a 1.59% yield, based on Wednesday’s closing price of $65.50.
Covidien plc (COV) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.