DOW JONES NEWSWIRES
The boards of Safeway Inc. (SWY) and Scripps Networks
Interactive Inc. (SNI) each announced an increase to their
quarterly dividends, becoming the latest firms to raise their
payouts as companies look to return cash to shareholders.
Supermarket operator Safeway approved a 21% increase, from 12
cents to 14.5 cents a share. The increase will cost the company an
additional $36.7 million a year.
Last month, Safeway--which operates regional chains such as
Vons, Randalls, Tom Thumb, Genuardi's and Carrs--reported its
first-quarter earnings slid 74% on an $80.2 million tax charge,
masking higher same-store sales.
Scripps, the owner of HGTV and Food Network, raised its dividend
to 10 cents from 7.5 cents, a 33% jump. The increase will cost
Scripps an additional $17 million a year.
Earlier this month, Scripps reported its first-quarter profit
grew 39% as the top line beat expectations amid higher advertising
revenue.
Shares of Safeway were down 0.6% at $25.26 in after-hours
trading, while Scripps' stock fell 0.2% to $51.88.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com