Atlanta, GA, May 26--Home Depot announced that its Board of Directors increased its quarterly cash dividend to eight and a half cents per share, an annual increase of 25 percent and a 21 percent increase over the fourth quarter dividend of seven cents. The Board also authorized $1 billion to repurchase outstanding stock.
The Board took this positive action based on the company's continued strong financial performance as evidenced in the record first quarter results," said Bob Nardelli, chairman, president and CEO. "Our results clearly demonstrate how we are building on the momentum to drive growth by staying focused on our strategy to enhance our stores, extend our business and expand our markets. Over the past two and a half years, the board has approved $6 billion for share repurchases. As of the end of the first quarter of fiscal 2004, we repurchased approximately $4.5 billion under this authorization. Our repurchase program, plus our increased dividend payout, enhances the return to the company's shareholders."
In addition to the share repurchase program, the company has reinvested over $10 billion over the prior three years and has projected another $3.7 billion in capital expenditures for 2004. Over the same period, the company's share repurchase program, coupled with dividends paid, has returned approximately 46 percent of cumulative earnings to shareholders.
Based on its first quarter performance, the company announced on May 18, 2004, that it has raised fiscal 2004 sales growth guidance to 10-12 percent. The company also raised its fiscal 2004 earnings per share (EPS) growth guidance from 7-11 percent to 10-14 percent. Excluding the impact of EITF 02-16, the company expects EPS growth of 13-16 percent for fiscal 2004.
This is the sixty-eighth consecutive quarter the company has paid a cash dividend. The dividend is payable June 24, 2004, to shareholders of record on the close of business on June 10, 2004.
