Zimmer Holdings Announces a Dividend and Buyback Program

" DOW JONES NEWSWIRES

Zimmer Holdings Inc. (ZMH) initiated a quarterly dividend and authorized a new stock repurchase program as the maker of orthopaedic products joins a growing list of companies looking to return value to shareholders.

The company declared an initial quarterly dividend of 18 cents, which will cost about $129 million a year.

Zimmer will also buyback up to $1.5 billion of stock through Dec. 31, 2014 under a new plan that replaces its prior program authorized through Dec.31, 2013.

Moody’s Investors Service said earlier this month that U.S. medical products and device makers were likely to pursue stock buybacks, dividends and acquisitions to satisfy shareholders and spur growth as demand remains soft and pricing pressure intensifies.

Zimmer in October reported its third-quarter profit rose slightly, though increases in its hip and knee products outside the U.S. contributed to 6.9% revenue growth.

Shares were trading at $48.80, up 2.7%.

-By Melodie Warner, Dow Jones Newswires; 212-416-2283; [email protected]

(END) Dow Jones Newswires”