Thermo Fisher Scientific Increases Quarterly Dividend

Rhea-AI Summary

Thermo Fisher Scientific Inc. (TMO) increases quarterly dividend by 11% to $0.39 per share, payable on April 15, 2024, to shareholders of record as of March 15, 2024.

Insights

Financial Analyst

The announcement of Thermo Fisher Scientific Inc.'s increased quarterly cash dividend is a significant indicator of the company's financial health and future prospects. An 11% increase in dividend payout is a strong signal to investors that the company is confident in its ability to generate cash flow. Dividends are often seen as a reflection of a company's commitment to returning value to shareholders and an increase can lead to a positive reaction in the stock market. It is also a sign that the management believes the company's earnings growth can sustain higher payouts.

From a financial perspective, the key metric to consider is the payout ratio, which is the proportion of earnings paid out as dividends to shareholders. A moderate payout ratio that is sustainable over time indicates a balance between rewarding shareholders and retaining earnings for future growth. Investors should also consider the dividend yield, which is the dividend per share divided by the stock price, as it provides a measure of the return on investment from dividends alone.

Market Research Analyst

In the context of the broader industry, Thermo Fisher's dividend increase places it within the competitive landscape of companies vying for investor attention. Investor sentiment can be influenced by such financial decisions and companies that consistently grow dividends may be perceived as more stable and reliable investments. This perception can be particularly important in the life sciences and analytical instruments sector, where companies are expected to balance reinvestment in innovation with shareholder returns.

Additionally, the timing of the announcement and the payment can impact investor decisions. The fact that the dividend is payable to shareholders of record as of a specific date can sometimes lead to short-term fluctuations in stock trading as investors position themselves to qualify for the dividend payment. Long-term investors, however, might be more focused on the growth trajectory of the dividend as a sign of sustainable company performance.

WALTHAM, Mass.--(BUSINESS WIRE)-- Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced that its Board of Directors authorized a quarterly cash dividend of $0.39 per common share, payable on April 15, 2024, to shareholders of record as of March 15, 2024. This reflects an 11% increase over the previous dividend payment of $0.35.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240221114407/en/

Media Contact Information:

Sandy Pound

Thermo Fisher Scientific

Phone: 781-622-1223

E-mail: sandy.pound@thermofisher.com

Investor Contact Information:

Rafael Tejada

Thermo Fisher Scientific

Phone: 781-622-1356

E-mail: rafael.tejada@thermofisher.com

Source: Thermo Fisher Scientific Inc.

FAQ

What is the new quarterly cash dividend authorized by Thermo Fisher Scientific Inc. (TMO)?

Thermo Fisher Scientific Inc. (TMO) authorized a quarterly cash dividend of $0.39 per common share.

When will the new dividend payment be made by Thermo Fisher Scientific Inc. (TMO)?

The new dividend payment of $0.39 per share will be payable on April 15, 2024.

What was the previous dividend payment amount by Thermo Fisher Scientific Inc. (TMO)?

The previous dividend payment amount was $0.35 per share.

What percentage increase does the new dividend payment represent compared to the previous payment by Thermo Fisher Scientific Inc. (TMO)?

The new dividend payment of $0.39 per share reflects an 11% increase over the previous payment of $0.35.