UTICA — ConMed Corp. (NASDAQ: CNMD) has decided to start paying shareholders a quarterly cash dividend.
The Utica–based medical-technology company has declared an initial dividend of 15 cents a share, payable on April 5 to shareholders of record as of March 15.
It’s the first time ConMed has paid a cash dividend to shareholders, according to the website The Dynamic Dividend, which provides information and research on dividend-paying stocks.
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ConMed officials could not immediately be reached for further comment on the new policy.
The ConMed board said in a Feb. 29 news release that it expects the company will pay future cash dividends on a quarterly basis and will pay out an estimated 60 cents per share total this year. That equates to a dividend yield of about 2 percent, based on ConMed’s current stock price, which is hovering around $30 a share.
Any decision to pay future dividends is subject to board approval and depends on ConMed’s earnings, cash flow, financial conditions, and financial covenants, the company said.
“The board’s decision to adopt a cash dividend policy reflects its confidence in ConMed’s long-term ability to continue generating meaningful profits and cash flow and a desire to ensure shareholders are benefitting appropriately from our operational strength,” ConMed President and CEO Joseph Corasanti said in the release.
Corasanti recently forecast that ConMed will generate full-year sales of $780 million to $790 million in 2012, with earnings per share of $1.75 to $1.88. For the first quarter, he estimated sales of $190 million to $195 million, with per-share earnings ranging from 42 cents to 47 cents.
His previous forecast was for sales between $745 million and $755 million.
Contact DeLore at tgregory@tmvbj.com
