PHOENIX — PetSmart shareholders should be pretty pleased with their investment now that the company's board of directors has raised the quarterly dividend. The board has approved an 18% increase to PetSmart's quarterly dividend, from 14 cents to 16.5 cents per share beginning in the second quarter of fiscal 2012.
The board of irectors also authorized a new $525 million share purchase authorization that expires in January 2014. This new share purchase authorization will commence on July 30 will be in addition to any unused amount remaining under the June 2011 authorization as of that date.
“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 16.5 cents will be paid on Aug. 10 to stockholders of record at the close of business on July 27. This is equivalent to an annual rate of 66 cents per share.