Covidien (NYSE:COV) has declared its first quarterly dividend, and launched a fresh share repurchase program. The company will distribute $0.26 per share of its stock on May 3 to shareholders of record as of April 4. That amount matches the company's last two disbursements. Prior to that, Covidien paid $0.225 per share.
The current dividend annualizes to $1.04 per share. That yields 1.6% at the firm's most recent closing stock price of $66.28.
Covidien also announced a new stock buyback program. Its board of directors authorized the purchase of up to $3 billion worth of stock. It did not say when the program would end. This authorization adds to the previous repurchase program, which has roughly $425 million remaining on the original $2 billion authorized in mid-2011.
Fool contributor Eric Volkman has no position in Covidien. The Motley Fool recommends Covidien. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.