Atlanta based largest home improvement The Home Depot announced its Board of Directors declared a second quarter cash dividend of 10 cents per share. The Board also authorized an additional $1 billion to repurchase outstanding shares, bringing the total authorized share repurchase program to $11 billion.
"They completed second quarter with strong financial results, which are indicative of strong sales and continued focus on process improvement and cost control. These results reflect the hard work and dedication of 325,000 associates," said Bob Nardelli, Chairman, President & CEO. "When it comes to capital allocation, they balance allocation between investing in business and returning cash to our shareholders. In 2005 we will invest over $3.7 billion back into the business. Over the past four years, they have invested over $17 billion, more than doubled their dividend, and, since late 2002, have spent $8.6 billion to repurchase 250 million shares, or over 10% of our outstanding shares."
The Home Depot continued to demonstrate strong financial discipline as evidenced by a return on invested capital of 23 percent at the end of the second quarter of 2005.
This is the seventy-fourth consecutive quarter the company has paid a cash dividend. The dividend is payable on September 15, 2005, to shareholders of record on the close of business on September 1, 2005.
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 2004 sales of $73.1 billion. The company employs approximately 325,000 associates and has 1,940 stores in 50 states, the District of Columbia, Puerto Rico, 10 Canadian provinces and Mexico. The company has announced plans for retail expansion into China.
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