28 Jan 2015

F&P Healthcare likely to raise dividend payout

6:20 am on 28 January 2015

Fisher & Paykel Healthcare's recent strong performance has lead to lower gearing and a likely increase in dividends.

In May 2010, the company set itself a gearing target of between 5 and 15 percent and by September last year, it was down to 18.6 percent with the target expected to be reached by March this year.

The healthcare products company had held its dividend payout steady at 12.4 cents annually since 2007.

An analyst at Milford Asset Management, Sam Trethewey said the company was likely to announce a higher payout in its next results.

Mr Trethewey said all the indicators are that Fisher & Paykel's recent strong performance would continue.

Get the RNZ app

for ad-free news and current affairs