The top dog dividend last week was PetSmart, the nation's largest specialty retailer of services and products for pets. Citing "significant free cash flow," PetSmart more than tripled its quarterly common payout, to 10 cents a share. In addition, the 23-year-old Phoenix company (PETM) authorized a $350 million stock buyback, which represents 13% of its $2.6 billion market capitalization. The repurchase plan runs to January 2012. PetSmart's new dividend is payable Aug. 14 to holders of record July 31; the ex-dividend date is July 29. Disbursements were initiated in June 2003 at two cents a share and hiked to three cents in March 2004, where they sat until Tuesday. Bob Moran, PetSmart's newly installed CEO (he had been chief operating officer since 2001), said "the stability and predictability of our cash flow demonstrates the continued strength of our business," despite the shaky economy. The American Pet Products Association estimates the 2009 pet-care market at roughly $45.4 billion, up more than 165% since 1994. PetSmart plans to add about 40 stores a year (down from around 100 in the past) for the foreseeable future, says Moran, and to reinvest in existing outlets to improve same-store sales growth and gross margins. In fiscal 2010's first quarter (ended April 30), net climbed 15.6% from the level a year earlier, to 37 cents a share (analysts' consensus guess had been 30 cents), on a 9.5% sales advance, to $1.33 billion. In the quarter, PetSmart spent $3.8 million on dividends and $25 million on share repurchases.

With 7.22 billion in fiscal 2009 sales, Darden Restaurants (DRI) is the world's largest casual-dining company. Its eateries include Red Lobster, Olive Garden, LongHorn Steakhouse, Capital Grille, Bahama Breeze and Seasons 52. Tuesday, Orlando-based Darden enriched its quarterly common payout 25%, its fourth consecutive annual increase. Investors of record July 10 will get the new dividend Aug. 3; the ex-date is July 8. Yield: 3.09%. Payouts have been ongoing since 1995, when the 41-year-old company, for a time owned by General Mills, went public. In fiscal 2009, ended May 31, Darden spent $145 million repurchasing 5.1 million of its shares. Since 1995, it has bought back over 152 million shares for $2.92 billion. Darden set a 52-week high of 41.21 on the Big Board April 22. The stock currently trades around 32. Its 52-week low is 13.21.