PetSmart's board of directors has approved a motion to increase the company's quarterly dividend by 18% from $0.16 to $0.19 per share beginning in the third quarter.
The dividend of $0.195 will be paid Nov. 15 to stockholders of record at the close of business Nov. 1. This is equivalent to an annual rate of $0.78 per share.
The board also authorized a new $535 million share purchase authorization that expires on Jan. 31, 2015. This new share purchase authorization will commence on Oct. 1 this year, 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 CEO David Lenhardt, “and today’s announcement reaffirms our commitment to returning excess cash to our shareholders through a combination of dividends and share repurchases.”
PetSmart employs approximately 53,000 workers and operates more than 1,301 pet stores in the United States, Canada and Puerto Rico, more than 196 in-store PetSmart PetsHotel dog and cat boarding facilities and is a leading online provider of pet supplies and pet care information. PetSmart provides a broad range of competitively priced pet food and pet products; and offers dog training, pet grooming, pet boarding, PetSmart Doggie Day Camp day care services and pet adoption services.