Safeway, Scripps Networks Increase Dividend Payouts

   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; [e-mail]