DEERFIELD, Ill., May 7, 2013 - Baxter International Inc. (NYSE:BAX) today announced it is increasing its dividend for shareholders by nine percent.
Baxter's Board of Directors declared a quarterly dividend of $0.49 per Baxter common share, payable on July 1, 2013 to shareholders of record as of the close of business on June 7, 2013. This maintains Baxter's payout ratio at approximately 40 percent, and follows a 34 percent increase in the dividend rate that Baxter implemented last year.
"Baxter remains committed to a disciplined capital allocation strategy, which balances re-investment for growth with returning meaningful value to our investors," said Robert J. Hombach, chief financial officer.
Baxter continues to generate strong cash flow and has returned significant value to shareholders in the form of dividends and share repurchases. In 2012, Baxter returned approximately $2.3 billion to shareholders through dividends totaling more than $800 million and share repurchases of approximately $1.5 billion (or approximately 25 million shares).
Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.
This release includes forward-looking statements concerning the company's dividend. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: continued strength in the company's financial position, including cash flows; future decisions of the board of directors of the company to continue payments to shareholders in the form of a dividend on a quarterly or other basis relative to alternative uses of funds; and other risks identified in the company's most recent filing on Form 10-K and other SEC filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements.