CHESAPEAKE, Va. — Dollar Tree Inc. has been authorized by its board to repurchase an additional $500 million of its common stock.

Dollar Tree Inc. has been authorized by its board to repurchase an additional $500 million of its common stock.

The deep discount chain, which operates 3,899 stores in 48 states, said Monday that the authorization is in addition to its October 2007 repurchase authorization, of which about $42 million remains.

Since 2003, Dollar Tree has invested $1.4 billion in share repurchases, including $218 million in the 2010 first quarter, according to the company.

"Dollar Tree continues to demonstrate the ability to self-fund its growth while generating substantial free cash," Bob Sasser, president and chief executive officer of Dollar Tree, said in a statement. "The increase in our share repurchase authority reflects our commitment to build value for long-term shareholders and our confidence in the future."

Late last month, Dollar Tree announced plans for a 3-for-2 stock split in the form of a 50% common stock dividend. With the split, the retailer’s number of outstanding shares stands to rise from about 85 million to 127 million.

Sasser stated at the time that the split "is designed to increase the liquidity of the company’s stock and provide a more attractive entry point for shareholders, affording the potential to broaden the shareholder base."

Plans call for the new shares to be distributed on June 24 for shareholders of record as of the close of business on June 10.

As of mid-morning trading Monday, Dollar Tree shares were up 28 cents to $63.30. The stock price has a 52-week range of $40.58 to $64.46.