Tyco International (NYSE:TYC) urged shareholders on Friday to approve a 7% increase in its annual dividend to 64 cents, saying the move would align with its strategy of returning excess cash to investors.
The Swiss-based maker of electronic security systems and fire-fighting equipment said the increase from 60 cents also compliments its goal of investing in the business and making selective acquisitions.
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It "reflects our confidence in the strength of Tyco's businesses and our ability to generate strong cash flow," said Tyco CEO George Oliver.
The dividend remains subject to investor approval at the company’s annual shareholder meeting on March 6.
Also on Friday, the company’s board declared a quarterly cash dividend of 15 cents a share, payable on Feb. 20 to shareholders of record on Jan. 25.
Shares of Tyco slumped some 1.2% to $29.12 on Friday, but remain up more than 28% from January.
Tyco swung to a fourth-quarter loss last month on separation charges related to the September spinoff of its North American security business as well as a 2.5% decline in sales.