Pet specialty retailer Petsmart Inc. of Phoenix reported today that its board of directors has approved increasing its quarterly dividend by 12 percent from $0.125 per share to $0.14 per share. The hike is effective in the second quarter of fiscal year 2011 and will be paid on Aug. 12, 2011 to shareholders of record as of July 29, 2011.

The board also authorized a new $450 million share purchase program, according to the company. This new share purchase program will begin on Aug. 1, 2011, and continue until January 2013. It will replace any unused amount remaining under the June 2010 share purchase program.

“We believe the stability and predictability of our cash flow demonstrates the continued strength of our business,” said Bob Moran, Petsmart’s president and CEO. “Creating shareholder value remains a priority and we intend to manage our capital effectively by reinvesting in our business and returning excess capital to our shareholders

Source: Pet Product News