Coty Dividend To Increase To 50 Cents Per Share After P&G Beauty Acquisition

Coty Inc. said Tuesday that the company's annual dividend is expected to increase to 50 cents per share from 25 cents per share at the close of its acquisition deal with Procter & Gamble Co.'s beauty brands. The company estimates cost savings of about $780 million after the next four years. And Coty expects the deal to add between 49 cents and 54 cents per share to fiscal 2015 adjusted earnings. One-off costs are expected to be about $1.2 billion over the next four years. Coty shares are unchanged in premarket trading, but up 26.6% for the past 12 months. The S&P 500 is down 1.3% for the last year.