Tractor Supply Announces Quarterly Dividend Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy TSCO?
Source: seekingalpha
- Dividend Increase: Tractor Supply has declared a quarterly dividend increase from $0.23 to $0.24 per share, representing a 4.3% rise, marking the company's 17th consecutive year of dividend growth, which underscores its stable profitability and commitment to shareholders.
- Yield Metrics: The forward yield of this dividend stands at 1.78%, providing investors with a relatively attractive return, reflecting the company's robust performance in the current economic landscape.
- Payment Details: The new dividend will be payable on March 10, with a record date of February 24 and an ex-dividend date also set for February 24, ensuring shareholders receive their earnings promptly, which enhances investor confidence.
- Growth Outlook: Tractor Supply has set a sales growth target of 4% to 6% for 2026 while planning to expand its store and delivery initiatives, indicating that the company remains focused on long-term growth while continuing to reward shareholders.
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Analyst Views on TSCO
Wall Street analysts forecast TSCO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSCO is 59.82 USD with a low forecast of 6.92 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 54.050
Low
6.92
Averages
59.82
High
70.00
Current: 54.050
Low
6.92
Averages
59.82
High
70.00
About TSCO
Tractor Supply Company is a rural lifestyle retailer in the United States. The Company is focused on supplying the needs of recreational farmers and ranchers. It operates retail stores under the names Tractor Supply Company and Petsense by Tractor Supply. Its stores are located in towns outlying various metropolitan markets and in rural communities. It also offers an expanded assortment of products through the Tractor Supply mobile application and online at TractorSupply.com and Petsense.com. The Company's selection of merchandise consists of various product categories, including livestock, equine and agriculture; companion animal; seasonal and recreation; truck, tool, and hardware, and clothing, gift, and decor. Its brands consist of 4health, American Farmworks, Bit & Bridle, Blue Mountain, C.E. Schmidt, Country Lane, Countyline, Country Tuff, Dumor, Farm Table, Groundwork, Huskee, and JobSmart.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tractor Supply Announces Quarterly Dividend Increase
- Dividend Increase: Tractor Supply has declared a quarterly dividend increase from $0.23 to $0.24 per share, representing a 4.3% rise, marking the company's 17th consecutive year of dividend growth, which underscores its stable profitability and commitment to shareholders.
- Yield Metrics: The forward yield of this dividend stands at 1.78%, providing investors with a relatively attractive return, reflecting the company's robust performance in the current economic landscape.
- Payment Details: The new dividend will be payable on March 10, with a record date of February 24 and an ex-dividend date also set for February 24, ensuring shareholders receive their earnings promptly, which enhances investor confidence.
- Growth Outlook: Tractor Supply has set a sales growth target of 4% to 6% for 2026 while planning to expand its store and delivery initiatives, indicating that the company remains focused on long-term growth while continuing to reward shareholders.
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- Meta's Dividend Potential: Although Meta's dividend yield is only 0.3%, its 9% payout ratio indicates significant potential for future dividend increases, coupled with the company's $81.6 billion in cash and marketable securities, reflecting a strong financial position.
- Tractor Supply's Stable Returns: With a dividend yield of 1.7%, Tractor Supply maintains a relatively conservative 45% payout ratio despite slower sales growth, and the company anticipates accelerating sales growth in the future, providing reliable investment returns.
- Investment Value Assessment: With price-to-earnings ratios of 29 and 26 for Meta and Tractor Supply respectively, both stocks appear attractively priced relative to their long-term potential, and despite inherent risks, investors may consider adding these dividend stocks to their portfolios.
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- Strong Financial Health: As of 2025, Meta's cash, cash equivalents, and marketable securities totaled $81.6 billion, far exceeding its long-term debt of $58.7 billion, indicating a robust balance sheet that supports future growth and dividend payments.
- Tractor Supply's Steady Growth: Although Tractor Supply's sales growth rate was only 4.3% in fiscal 2025, its dividend yield stands at 1.7% with a payout ratio of 45%, demonstrating the company's ability to provide stable returns, appealing to risk-averse investors.
- Long-Term Growth Expectations: Tractor Supply anticipates accelerating sales growth in the future, aiming for annual net sales growth of 6% to 8% and earnings-per-share growth of 8% to 11%, offering investors a promising long-term growth outlook.
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Tractor Supply Announces Quarterly Dividend Increase
- Dividend Increase: Tractor Supply has declared a quarterly dividend increase from $0.23 to $0.24 per share, representing a 4.3% rise, marking the company's 17th consecutive year of dividend growth, which underscores its stable profitability and commitment to shareholders.
- Yield Metrics: The forward yield of this dividend stands at 1.78%, providing investors with a relatively attractive return, reflecting the company's robust performance in the current economic landscape.
- Payment Details: The new dividend will be payable on March 10, with a record date of February 24 and an ex-dividend date also set for February 24, ensuring shareholders receive their earnings promptly, which enhances investor confidence.
- Growth Outlook: Tractor Supply has set a sales growth target of 4% to 6% for 2026 while planning to expand its store and delivery initiatives, indicating that the company remains focused on long-term growth while continuing to reward shareholders.
See More
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- Importance of Dividends: Amid AI-related uncertainties, dividend payments provide investors with a risk mitigation opportunity, allowing them to directly control a portion of company earnings, thereby enhancing confidence during market volatility.
- Meta's Dividend Potential: Although Meta's dividend yield is only 0.3%, its 9% payout ratio indicates significant potential for future dividend increases, coupled with the company's $81.6 billion in cash and marketable securities, reflecting a strong financial position.
- Tractor Supply's Stable Returns: With a dividend yield of 1.7%, Tractor Supply maintains a relatively conservative 45% payout ratio despite slower sales growth, and the company anticipates accelerating sales growth in the future, providing reliable investment returns.
- Investment Value Assessment: With price-to-earnings ratios of 29 and 26 for Meta and Tractor Supply respectively, both stocks appear attractively priced relative to their long-term potential, and despite inherent risks, investors may consider adding these dividend stocks to their portfolios.
See More
Dividend Investment Opportunities in Meta and Tractor Supply
- Meta's Dividend Potential: With a dividend yield of only 0.3% and a payout ratio of just 9%, Meta has significant room to increase its dividends over time, which could attract more income-seeking investors looking for stability.
- Strong Financial Health: As of 2025, Meta's cash, cash equivalents, and marketable securities totaled $81.6 billion, far exceeding its long-term debt of $58.7 billion, indicating a robust balance sheet that supports future growth and dividend payments.
- Tractor Supply's Steady Growth: Although Tractor Supply's sales growth rate was only 4.3% in fiscal 2025, its dividend yield stands at 1.7% with a payout ratio of 45%, demonstrating the company's ability to provide stable returns, appealing to risk-averse investors.
- Long-Term Growth Expectations: Tractor Supply anticipates accelerating sales growth in the future, aiming for annual net sales growth of 6% to 8% and earnings-per-share growth of 8% to 11%, offering investors a promising long-term growth outlook.
See More
Dramatic Drop in Fortune 500 Companies' DEI Participation
- Participation Rate Plummets: Research from the Human Rights Campaign reveals a staggering 65% drop in Fortune 500 companies publicly disclosing their diversity, equity, and inclusion (DEI) practices, falling from 377 in 2025 to just 131 in 2026, highlighting the pressures and challenges businesses face in the current political climate.
- Widespread Impact: Among the 534 companies that participated, 100 achieved a perfect score, representing nearly 6 million U.S. employees, indicating that despite the overall decline, some firms continue to excel in DEI, reflecting varying market perceptions of social responsibility.
- Political Shift: The rise of the anti-DEI movement, particularly with backing from the White House, has prompted many companies to reassess their DEI policies, with major firms like Walmart and Ford, which previously supported DEI, now withdrawing from related assessments, signaling a significant strategic shift.
- Uncertain Future: As more companies exit the Human Rights Campaign's Corporate Equality Index, the future implementation and evaluation of DEI initiatives face greater uncertainty, potentially impacting corporate social image and employee work environments.
See More
65% Drop in Fortune 500 Companies' Participation in Equity Index
- Significant Participation Decline: The Human Rights Campaign's Corporate Equality Index reveals a drastic 65% drop in Fortune 500 companies' participation, plummeting from 377 in 2025 to just 131 in 2026, indicating a troubling decline in corporate transparency regarding diversity, equity, and inclusion (DEI) practices.
- Widespread Impact: Among the 534 companies that participated, 100 achieved a perfect score, representing nearly 6 million U.S. employees; however, the significant reduction in participation raises concerns about the potential erosion of workplace rights and support for these employees, adversely affecting the overall work environment.
- Political Influence: The rise of the anti-DEI movement, particularly with backing from the White House, has prompted many companies to reassess their DEI policies, leading to exits from the index by major firms like Walmart, Ford, and Lowe's, highlighting the impact of the political landscape on corporate social responsibility.
- Uncertain Future Outlook: HRC President Kelley Robinson emphasized that the current climate poses challenges for LGBTQ+ workers and consumers, suggesting that future corporate commitments and practices regarding DEI may face greater scrutiny, potentially affecting brand reputation and market competitiveness.
See More
Analysis of Store Openings and Closures in U.S. Retail Sector
- Increase in Store Openings: Coresight Research projects that U.S. retailers will open approximately 5,500 new stores in 2026, representing a 4.4% year-over-year increase, indicating that value retailers are effectively attracting consumer spending and reflecting sustained demand for low-cost goods.
- Decrease in Store Closures: It is expected that about 7,900 stores will close in 2026, a 4.5% decline from the previous year, marking the lowest number of closures in the past three years, which suggests signs of recovery in the retail sector post-pandemic.
- Impact of Bankruptcies: Last year, 32 retailers filed for bankruptcy, leading to significant store closures; however, affluent consumers continued to support retail growth, highlighting the ongoing K-shaped recovery in the economy.
- Tightening Real Estate Market: With a slowdown in bankruptcies, retail real estate demand is expected to tighten, particularly in major retail markets, as retailers compete for limited commercial space, potentially leading to rising rents in the coming years.
See More
