Tractor Supply (TSCO) Shows Strong Dividend Growth Potential for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Yahoo Finance
- Dividend Growth Potential: Tractor Supply's annualized dividend stands at $0.92 per share with a yield of 1.8%, and despite recent modest increases, the company's payout ratio of 44% indicates ample room for future growth, with expectations for high single-digit increases in the coming years.
- Performance Recovery: In Q3 2025, Tractor Supply reported a 7.2% year-over-year increase in net sales and a 3.9% rise in comparable-store sales, indicating a recovery in business as it normalizes post-COVID-19 demand surge.
- Long-Term Growth Targets: At the 2024 Investment Community Day, management projected annualized sales growth of 6% to 8% from 2025 to 2030, alongside an expected average EPS compound growth rate of 8% to 11%, driven by new store openings and operating margin expansion.
- Market Competition Risks: Despite facing competitive pressures from e-commerce and general merchandise superstores, Tractor Supply's current valuation at 24 times earnings makes it an attractive investment, particularly given its stable dividend yield.
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 64.76 USD with a low forecast of 52.00 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
14 Buy
6 Hold
0 Sell
Moderate Buy
Current: 50.360
Low
52.00
Averages
64.76
High
70.00
Current: 50.360
Low
52.00
Averages
64.76
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.
