Lowe's to buy up US$5b of its shares

Lowe's, the United States' second-largest home improvement retailer, said Monday that it will buy back up to US$5 billion of its common stock.

While the repurchase program has no expiration date, the Mooresville, North Carolina company said it plans to use the full amount over the next two to three years.

Lowe's board also announced that it is declaring a regular quarterly dividend of 14 cents. The dividend will be paid on November 2 to shareholders of record on October 19.

Last week Lowe's reported that its second-quarter net income was nearly flat due to volatile weather and shoppers' worries about the economy. The company also lowered its sales forecast for the second half of its fiscal year due to consumers' uncertainty.

Lowe's runs more than 1,725 stores in the US, Canada and Mexico.

Shares of the company closed Friday at US$19.31.