Boston, MA 10/07/2014 (wallstreetpr) – PetSmart, Inc. (NASDAQ:PETM) said that its Board of Directors has given its permission for paying a quarterly cash dividend of 19.5 cents a share to all the qualified shareholders. The company has maintained the dividend rate for the fifth time in a row, which meant that it failed to increase the dividend rate after every four quarters for the second time in a row.
PetSmart, Inc. (NASDAQ:PETM) has increased its dividend rate significantly by 56.0% after April 2011. As a result, the five-year average rate of dividend presented a stronger growth than the average three-year dividend pace.
Payment Of Dividend
PetSmart said that October 31 has been fixed as the record date to determine the eligible shareholders to receive its quarterly cash dividend. PetSmart, Inc. (NASDAQ:PETM) would pay a dividend on November 14 to its shareholders. The stock would turn into ex-dividend from October 29.
The latest dividend worked out to 78 cents a share on a full year basis. The current dividend provided a yield of 1.10%, and the five-year average dividend yield was also the same. However, the estimated dividend yield for the ten-year period represented 5.85%.
The current dividend payout ratio of 19% is slightly lower than the five-year average dividend payout ratio of 20.0%.
Growth And History
PetSmart, Inc. (NASDAQ:PETM) paid a dividend of ten cents a share between July 2009 and April 2010. It was increased to 12.5 cents a share from July 2010 for four quarters and lifted to 14 cents a share for another four quarters, Nasdaq data indicated. It has further increased its dividend to 16.5 cents a share in July 2012 and maintained the rate for five quarters. The last hike in the dividend rate happened in October 2013. Since then, it has been maintaining the dividend of 19.5 cents a share.
As a result, the average growth rate for the last five-year period was significantly higher at 37.9% compared to the average dividend growth pace for the three-year period of 14.86%.
