PLEASANTON, Calif. (AP) -- Safeway Inc. on Tuesday said it will increase its quarterly dividend by 14 percent.
The company plans to pay a dividend of 20 cents per share on July 11 to shareholders of record on June 20. That is up from its most recent dividend of 17.5 cents per share.
Safeway, based in Pleasanton, Calif., operates 1,641 grocery stores across North America.
The company's stock rose 80 cents, or 3.3 percent, to close at $25.45 amid a broad market rally. It added another 31 cents to reach $25.76 in after-hours trading.