Covidien to Buy Back $3 Billion in Shares (COV)

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 DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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