Dividend Increase – Teva Pharmaceuticals (TEVA)

TEVA announced fourth quarter and full year 2012 results on 02/07. Here’s a link to the transcript on Seeking Alpha if you’d like to read it: RESULTS.

During this earnings announcement TEVA also announced a dividend increase of 15%. TEVA was paying a quarterly dividend of 1.00 (NIS) previously so the new rate will be 1.15 (NIS). It’s previous year’s increase was 25% from .80 (NIS) to 1.00 (NIS). At current conversion rates of the Israeli Shekel to U.S. Dollar the quarterly dividend would equal .312. Israel has a 20% withholding tax on dividends paid to U.S. residents. So taking the 20% withholding tax into account , this would be an effective dividend of .2496. At this rate TEVA is yielding 2.56%.

TEVA pays its next dividend on March 7th with an ex-dividend date of Feb. 19th.

I plan to slowly accumulate more TEVA as I believe it represents a solid value in the current market.

From E*Trade:

Teva Pharmaceutical Industries Ltd (Teva) is a global pharmaceutical and drug company. It develops, produces and markets generic drugs in all treatment categories. The Company has a pharmaceutical business, whose principal products include Copaxone and Azilect. Teva’s active pharmaceutical ingredient (API) business provides vertical integration to Teva’s own pharmaceutical production. The Company’s global operations are conducted from North and Latin America to Europe and Asia. As December 31, 2010, it had direct operations in approximately 60 countries, including 40 finished dosage pharmaceutical manufacturing sites in 19 countries, 28 pharmaceutical research and development (R&D) centers and 21 API manufacturing sites. On October 14, 2011, it acquired Cephalon, Inc.