“This increase reflects our good performance to date in 2011, our confidence in our future growth, sustainable cash flow and our commitment to enhance shareholder value,” said José (Joe) E. Almeida, President and CEO.

“The combination of this dividend increase, coupled with our Board’s decision announced last month to authorize a new $2 billion share repurchase program, underscores our commitment to balance cash return to shareholders with reinvestment in our business. In the last twelve months, we have returned more than 50% of our free cash flow to shareholders, well above our target of 25% to 40%,” Almeida added.

At the new rate, the annual dividend is $0.90 per ordinary share compared to the previous rate of $0.80 per ordinary share. The next quarterly dividend is payable on November 4, 2011, to shareholders of record on October 13, 2011.

ABOUT COVIDIEN

Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines in three segments: Medical Devices, Pharmaceuticals and Medical Supplies. With 2010 revenue of $10.4 billion, Covidien has 41,000 employees worldwide in more than 65 countries, and its products are sold in over 140 countries. Please visit www.covidien.com to learn more about our business.

NON-GAAP FINANCIAL MEASURES

This press release contains a financial measure, free cash flow, which is considered a “non-GAAP” financial measure under applicable Securities & Exchange Commission rules and regulations.

source:Covidien plc