Stryker Raises Dividend 25%

In last week’s CWS Market Review, I said I expected Stryker ($SYK) to raise its quarterly dividend soon.

I expected Stryker to increase its payout from 21.25 cents per share to around 23 cents per share. Well, I wasn’t optimistic enough. The company just announced that the dividend will rise 25% to 26.5 cents per share. That brings the annual dividend to $1.06 per share. At Wednesday’s close, Stryker now yields 1.95%.

Stryker’s board also approved a $405 million increase in the share buyback program which brings the total to $1 billion.

“Given the considerable strength of our balance sheet and strong cash flow generation, we are well positioned to pursue a capital allocation strategy that includes highly focused M&A, an increasingly robust dividend and share buybacks,” said Kevin A. Lobo, President and Chief Executive Officer of Stryker. “We are committed to a strategy that will help drive our sales and earnings growth while simultaneously returning capital to shareholders at meaningful and consistent levels.”

Stryker has raised its dividend every year since 1995.

Posted by on December 6th, 2012 at 1:42 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Tickers: