Petfood and supplies retailer PetSmart Inc. announced its board of directors approved an increase in its quarterly dividend by 18 percent from US$0.165 to US$0.195 per share beginning in the third quarter of fiscal 2013. The dividend of US$0.195 will be paid on November 15 to stockholders of record at the close of business on November 1. This is equivalent to an annual rate of US$0.78 per share.
The board of directors also authorized a new US$535 million share purchase authorization that expires on January 31, 2015. This new share purchase authorization will commence on October 1 and will be in addition to any unused amount remaining under the June 2012 share purchase authorization as of that date.
"We believe the stability and predictability of our cash flow demonstrates the continued strength of our business," said David Lenhardt, CEO, "and today's announcement reaffirms our commitment to returning excess cash to our shareholders through a combination of dividends and share repurchases."