Home Depot reports dividend increase

The Home Depot (NYSE: HD), the world's largest home improvement retailer, announced Aug. 21 that its board of directors increased the second-quarter cash dividend to 7 cents per share. This is an annual increase of 24 percent, and an increase over the first-quarter dividend of 6 cents.

"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 Bob Nardelli, chairman, president and CEO, in a news release. "Our strong second-quarter financial performance, cash balance and solid outlook for the future enable Home Depot to return capital to its shareholders while maintaining its record investment in new stores and business transformation."

Coupled with the dividend increase, the company announced that its board of directors authorized an increase to the company's previously announced $500 million share repurchase program, bringing the authorization to $1 billion.

"This $1 billion authorization is on top of the $2 billion repurchase program we initiated and completed last year," said Nardelli. "We believe this action is just another vote of confidence in our company and our prospects."

This is the 65th consecutive quarter that the company has paid a cash dividend. The dividend was paid Sept. 18 to stockholders of record at the close of business Sept. 4.

Founded in 1978, The Home Depot is the world's largest home improvement specialty retailer and the second largest retailer in the United States, with fiscal 2002 sales of $58.2 billion.

The company employs approximately 315,000 associates and has more than 1600 stores in 50 states, the District of Columbia, Puerto Rico, eight Canadian provinces and Mexico.