Wednesday, May 28, 2008

Supervalu Increases Dividend 1.5%

Today, Supervalu, Inc. (SVU) announced a 1.47% increase in its 3rd quarter 2008 dividend. The new quarterly dividend will increase to 17.25 cents per share versus 17 cents per share in the same quarter last year. The company's 2nd quarter dividend of 17 cents per share will be paid on June 16th to shareholders of record on June 2. SVU's estimated earnings per share for year end February 2009 is $3.10. The dividend payout ratio on the 2009 earnings estimate is approximately 22%. The 5-year average payout ratio is 28%. The company carries an S&P Quality Ranking of A-.

In addition to the dividend increase, the company announced a new annual share repurchase program authorizing the purchase of up to $70 million of the Company's common stock. Stock purchases will be made from time to time in open market purchases primarily from the cash generated from the settlement of stock options. The company noted this annual authorization program replaces the existing $235 million share repurchase program authorized in April 2007.

Supervalu dividend analysis table May 2008
Supervalu stock chart May 2008

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