Minneapolis - Best Buy has authorized a new $5 billion share repurchase program.
The new program terminates and replaces the retailer's prior $5.5 billion share repurchase program, which was announced on June 27, 2007, and had approximately $800 million of remaining authorization as of the first fiscal quarter of 2012, ended May 28, 2011.
"Best Buy's business generates significant cash flow and we are committed to using that cash in a disciplined manner," said Brian Dunn, CEO of Best Buy in a statement. "We are very pleased to announce this new share repurchase program that underscores our commitment to enhancing returns for shareholders."
The retailer's board also approved a 7 percent increase in the company's quarterly cash dividend to 16 cents per common share. The change will be effective with the quarterly dividend which, if authorized, would be payable on Oct. 25, 2011, to shareholders of record as of Oct. 4, 2011.