Tyco International declares quarterly dividend
The Board recommended that shareholders approve an annual dividend of $1.00 per share at the company's annual general meeting of shareholders to be held on March 9, 2011.
The Board of Directors of Tyco International Ltd. declared a quarterly dividend of 0.23 Swiss Francs (CHF) per share, payable on February 23, 2011 to shareholders of record at the close of business on January 28, 2011, subject to a required filing with the Swiss Commercial Register.
Additionally, the board recommended that shareholders approve an annual dividend of $1.00 per share at the company's annual general meeting of shareholders to be held on March 9, 2011. The proposed $1.00 dividend represents an approximate 20 percent increase over the current $0.84 annual dividend approved by shareholders in 2010.
"The dividend increase reflects our continued confidence in the strength of Tyco's businesses and our ability to generate strong cash flow," said Tyco Chairman and Chief Executive Officer Ed Breen. "This action is also consistent with our capital allocation strategy to invest in our businesses, make selective acquisitions and return excess cash to shareholders."
The quarterly dividend of CHF 0.23 per share payable on February 23, 2011 is the fourth installment of an annual dividend of CHF 0.90 per share approved by shareholders at the Annual General Meeting of Shareholders held in March 2010. The dividend will be paid in U.S. Dollars (USD) converted from Swiss Francs at the USD/CHF exchange rate in effect approximately one week prior to the payment date. Because of potential currency translation movements, the USD amount shareholders will actually receive may be more or less than the amount stated above. The dividend is paid from a reduction to share capital under Swiss law.
The proposed annual dividend of $1.00 per share is an ordinary cash dividend to be made out of the company's "contributed surplus" equity position in its statutory accounts. Payment of the dividend is proposed to be made in four equal quarterly installments of $0.25 from May 2011 through February 2012. Unlike dividend payments made from registered share capital, dividend payments made from contributed surplus may be declared in U.S. dollars. As a result, the amount of the dividend will not be subject to fluctuations in the USD/CHF exchange rate. However, if approved, the dividend will be capped at an amount such that the aggregate reduction to the Company's contributed surplus does not exceed $2.00 per share, based on the USD/CHF exchange rate in effect at the time of the annual general meeting.
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