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PetSmart raises quarterly dividend, plans buyback

PHOENIX (AP) -- Pet store chain PetSmart Inc. said Thursday that it is increasing its regular quarterly dividend by 3 cents to 19.5 cents from 16.5 cents.

The company's board also approved a plan to repurchase $535 million of its stock.

The dividend will be paid on Nov. 15 to shareholders of record as of Nov. 1.

Shareholders like stock buybacks because they reduce the number of available shares in a company and thereby increase the value of the remaining shares and boost per-share earnings results.

PetSmart's shares closed up 56 cents at $74.54.