Michaels Stores' ( MIK) board declared its first-ever quarterly dividend on Thursday and approved more stock buybacks.

The dividend, made possible by recent changes in the tax code, will give 10 cents per share on July 30 to shareholders of record on July 15, according to a press release.

"Declaring this dividend is a vote of confidence in Michaels' future and an important step forward in the company's emergence as a major national retailer and growth company with a strong financial foundation," said Charles Wyly, the company's chairman, in a statement.

Meanwhile, having already repurchased 14.7 million shares of common stock since June of 1998, the home decorations and crafts retailer is now authorized for repurchase to 1.6 million more shares, according to the release. Currently, the company has 66.6 million shares outstanding.

Based in Irving, Texas, Michaels operates 776 stores in 48 states and Canada.

Shares of the company were up almost 4%, or $1.88, at $39.82 on Thursday morning.