Specialty pet retailer PetSmart (NASDAQ: PETM ) announced today its third-quarter dividend of $0.195 per share, an 18% increase in the payout to investors made last quarter of $0.165 per share. The board of directors said the quarterly dividend is payable on November 15 to holders of record at the close of business on November 1.
The board also said it had authorized a new $535 million stock buyback authorization beginning October 1 that would expire on Jan. 31, 2015. It will be in addition to any remaining repurchase amounts left on its current repurchase authorization.
Saying the twin announcements affirms the pet retailer's commitment to returning excess cash to its shareholders, PetSmart CEO David Lenhardt said, "We believe the stability and predictability of our cash flow demonstrates the continued strength of our business."
The regular dividend payment equates to a $0.78-per-share annual dividend, yielding 1% based on the closing price today of PetSmart's stock.