Dividend Hikes: PetSmart - TheStreet

Dividend Hikes: PetSmart

PetSmart announces a 25% increase to its dividend.
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NEW YORK (TheStreet) -- PetSmart (PETM) shares rose after the pet products retailer announced a 25% increase to its dividend.

PetSmart

said it will pay a quarterly cash dividend of 12.5 cents per share, up from 10 cents per share, on Aug. 13 to shareholders of record on July 30. The increase pushes PetSmart's dividend yield higher to 1.56% from 1.25%.

The dividend announcement came as PetSmart said its board also approved a new $400 million share buyback program, which expires in January 2012. The new buyback program replaces the $350 million program approved by PetSmart's board in June 2009, including the $103 million that remained available under that program.

"The return of excess cash to our stockholders through a combination of dividends and share repurchases reaffirms the stability and predictability of our cash flow as well as demonstrating the continued strength of our business," PetSmart CEO Bob Moran said in an statement.

Shares of PetSmart were up 34 cents, or 1.1%, to $32.02. The stock is now up 20% in 2010 and more than 58% over the last 12 months.

In other dividend news,

Lincare Holdings

(LNCR)

said late Monday that it will begin quarterly cash dividend payments on July 29 to stockholders of record as of July 15. The first quarterly dividend of 20 cents per share represents a yield of 2.4%.

Lincare shares were lately rising by $2.45, or 8%, to $33.21. The stock is up 34% in 2010 and more than 132% over the last year.

Meanwhile,

Jos. A. Bank

(JOSB)

shares continued to slide after the men's tailored clothing retailer on Monday declared a 50% stock dividend. Each shareholder of record as of July 30 will receive one additional share of common stock for every two shares then owned. Dividend shares and cash for fractional shares will be distributed on August 18.

Jos. A. Bank shares fell nearly 3% Monday as the number of outstanding shares of common stock will increase to approximately 27.5 million shares from approximately 18.4 million shares. Lately, the stock was down 0.2% to $59.

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-- Written by Robert Holmes in Boston

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