Lowe's (NYSE:LOW) plans to buy back up to $5 billion of its stock, about a fifth of its market value, over the next three years.
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The Mooresville, N.C.-based home improvement retailer, the second largest in the nation, said the authorization has no expiration date, but it expects to use the full amount over the next two to three years.
The company, which offers a range of products for home maintenance, repair, remodeling and decorating, said the repurchases will be made from time to time in either the open market or through private transactions.
Lowe's, which booked sales last year of $48.8 billion, said its board has declared a quarterly cash dividend of 14 cents a share, payable Nov. 2 to shareholders of record on Oct. 19.
The company, which has declared a dividend every quarter since going public in 1961, raised its dividend 27% in May. The decision to buy back stock comes a week after the retailer reported weaker-than-expected quarterly sales and cut its fiscal outlook.