Tyco Board Proposes 6.7% Increase to Annual Dividend

   By Melodie Warner 
 

Tyco International Ltd.'s (TYC) board is recommending shareholders approve a 6.7% increase to the company's annual dividend.

The company intends to raise its annual dividend to 64 cents from 60 cents if approved at the company's annual shareholders meeting scheduled for March 6. Tyco would spend about $19 million more a year for the higher payout.

"The dividend increase reflects our confidence in the strength of Tyco's businesses and our ability to generate strong cash flow," said Chief Executive George Oliver.

The former industrial conglomerate spun off its North American security business in September to create ADT Corp. (ADT). It also split off, then merged its pipe-and-valve business with pump-filter manufacturer Pentair Inc. (PNR). What remains of Tyco is focused on fire-suppression systems for commercial buildings and safety equipment.

Last month, the company reported it swung to fiscal fourth-quarter loss on separation and other charges while revenue declined 2.5%.

Shares were recently trading 1.2% lower at $29.14. The stock is up 27% so far this year.

Write to Melodie Warner at [e-mail]

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