PetSmart Inc., a pet product retailer, announced the board of directors' approval to increase its quarterly dividend by 18 percent from US$0.14 to US$0.165 per share beginning in the second quarter of fiscal 2012. A new US$525 million share purchase was also authorized that expires in January 2014, and begins on July 30.
“The return of excess cash to our shareholders through a combination of dividends and share repurchases reaffirms our commitment to the creation of shareholder value through effectively managing the capital in our business,” said Bob Moran, chairman and CEO. “We believe the stability and predictability of our cash flow demonstrates the continued strength of our business.”
The dividend of US$0.165 will be paid on August 10 to stockholders of record at the close of business on July 27, equivalent to an annual rate of US$0.66 per share.