Dividend.com: Stock Split for ABC

AmerisourceBergen Announces 2-for-1 Stock Split, Boosts Dividend 20%

Pharmaceutical services company AmerisourceBergen(ABC Quote) said Tuesday it will complete a 2-for-1 stock split and raise its dividend payout by 20%.

The Chesterbrook, Penn., company also reaffirmed its full-year guidance, saying it still expects earnings from operations to range between $3.18 and $3.30, or $1.59 to $1.65 when accounting for the stock split. On average, analysts expect full-year earnings of $3.26 per share, not including the split.

After the split, the new dividend payout will be 6 cents per share quarterly. AmerisourceBergen shares gained 42 cents or 1.2% in morning trading Tuesday.

We have avoided shares of AmerisourceBergen since our coverage began in early June 2008 and the stock was trading at $41.12. The company has a 1.35% dividend yield based on last night's closing stock price of $35.58.

The stock has technical support in the $30 to $32 price area. If the shares can firm up, we see overhead resistance around the $38 to $40 price area. We would remain on the sidelines for now. AmerisourceBergen holds a Dividend.com DARS Rating of 3.2 out of 5 stars.

Medtronic Fourth-Quarter Profit Falls 69% on Charges and Sales Decline

Medical device-maker Medtronic(MDT Quote) said Tuesday that its fiscal fourth-quarter profit fell 69% from last year's levels, hurt by restructuring and patent settlement charges.

The Minneapolis-based company reported fiscal fourth-quarter net income of $250 million or 22 cents per share, down from $812 million or 72 cents per share, in the year-ago period.

Excluding one-time restructuring charges and a significant patent dispute settlement with Johnson & Johnson(JNJ Quote), the company saw adjusted earnings of 82 cents per share. Revenue fell 1% to $3.83 billion compared with $3.86 billion in the same quarter last year.