The Home Depot Announces Additional $3.5B Share Repurchase Program

August 24, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on August 2006 The board of directors of The Home Depot has authorized an additional $3.5 billion to repurchase outstanding shares, bringing the total authorized share repurchase program to $17.5 billion. As of the end of the second quarter of fiscal 2006, the company had repurchased $12.5 billion under this authorization. The board also approved a second quarter dividend of 15 cents.

“The board’s decision today reinforces our confidence in the company’s strategic growth plans and our commitment to generate shareholder returns,” said Bob Nardelli, chairman, president and chief executive officer. “Our strong financial discipline and clear growth strategy allow us to balance capital allocation between investing in our business and returning cash to our shareholders. In 2006 we will invest approximately $3.8 billion back into the business, with over 90 percent to be invested in our retail stores. Since 2001, we have invested $19 billion back into the business, while also returning over $16 billion to shareholders in the form of share repurchases and dividends.”

The company increased its quarterly dividend by 50 percent in January. In addition, since 2002, the company has repurchased 349 million shares, or 17 percent of outstanding shares.

The dividend is payable on September 21to shareholders of record on the close of business on September 7.