Investing.com – Albertsons stock (NYSE:) traded 4.5% higher in Monday’s premarket as a strong second quarter led it to raise its annual outlook and declare a higher dividend.

At $16.5 billion, sales and other revenues were 4.4% more in the September 11 quarter. This was due to an increase of 1.5% in comparable sales as well as higher fuel sales.

Revenue and adjusted earnings were both higher than expected.

While supply chain, product, and advertising costs were significantly higher than last year but were balanced by productivity gains and better pharmacy margins in the administration of Covid-19 vaccinations.

Similar results were achieved for Covid related expenses. However, higher wages and investment in digital and multichannel capabilities offset the lower costs.

After a two-year period of rapid growth, digital sales declined to 5%. However, the retailer increased its quarterly dividend from 20% to 12cs each share.

Now, the company expects its annual sales to drop by 3% at the midpoint in the guidance range. This is less than the earlier 5.5% decline. Adjusted EBITDA stands at $4 Billion at the center of this range, higher than its $3.75 billion forecast.