Home Depot

(HD) - Get Report

raised its second-quarter cash dividend by 17% and upped the amount of its current share repurchase program by $500 million.

The new dividend is 7 cents, up from 6 cents, payable Sept. 18 to stock of record Sept. 4.

"Given the recent changes in the tax law, the increased dividend is an effective way for the company to return capital to shareholders while balancing our need to grow the business," said CEO Bob Nardelli.

TheStreet Recommends

Nardelli also said the company's strong recent quarter also influenced the dividend increase. On Tuesday, Home Depot

reported a 10% increase in second-quarter profit, beating expectations.

The company also said its board of directors authorized an increase to its previously announced $500 million share repurchase program, bringing the authorization total to $1 billion.

"This $1 billion authorization is on top of the $2 billion repurchase program we initiated and completed last year," said Nardelli.

Shares of Atlanta-based Home Depot closed at $32.76 Thursday.