We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tractor Supply's Dividend Hike, Share Buyback to Boost Value
Read MoreHide Full Article
Tractor Supply Company (TSCO - Free Report) is focused on boosting investor sentiment through several growth initiatives and shareholder-friendly moves. To further enhance shareholder value, the company announced a 12.9% hike in its quarterly cash dividend to 35 cents per share compared with the prior rate of 31 cents. This marks the company’s ninth straight year of dividend increase. The new dividend is payable Jun 11, 2019 to shareholders on record as of May 28, 2019.
The company increased the authorization for its share buyback program by $1.5 billion. This brings the total authorizations to date to $4.5 billion. As of Mar 31, 2019, Tractor Supply has repurchased nearly 62.8 million shares for about $2.6 billion since 2007, which marks the inception of its share repurchase plan.
Tractor Supply has always followed a disciplined capital allocation strategy that focuses on making investments to develop business, while returning cash to shareholder through dividend payouts and share buybacks. The company’s strong balance sheet and free cash flow has helped it to execute balanced capital allocation strategy which includes reinvesting in business, increasing dividend and executing share buybacks.
We appreciate Tractor Supply’s efforts to enhance long-term shareholder value. Markedly, dividend hikes not only boost shareholder returns but also raise the market value of a stock. Through this strategy, companies try to win investors and persuade them to either buy or hold the scrip instead of selling it.
Apart from dividend hikes, the company is focusing on growth initiatives, which include expansion of store base and incorporation of technological advancements to induce traffic and drive the top line. It has been improving marketing and merchandising initiatives as well as its supply chain efficiencies to boost profitability.
Moreover, this Zacks Rank #2 (Buy) company remains focused on integrating the physical and digital operations to offer consumers a seamless shopping experience through its "ONETractor" initiative.
Apparently, the company is reaping significant benefits from its Buy Online Pick Up in Store program. This is quite evident from robust double-digit e-commerce sales growth for 27 straight quarters, reported in first-quarter 2019. Moreover, it remains well on track to expand its stockyard in-store kiosk and enhance its mobile POS technologies, which are likely to generate incremental sales.
In the past one year, shares of this Brentwood, TN-based company have gained 47.2%, outperforming the industry’s growth of 25.7%.
Build-A-Bear Workshop, Inc. (BBW - Free Report) has a long-term earnings growth rate of 9% and a Zacks Rank #2.
Stitch Fix, Inc. (SFIX - Free Report) has a long-term earnings growth rate of 22.5% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time. See 7 breakthrough stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tractor Supply's Dividend Hike, Share Buyback to Boost Value
Tractor Supply Company (TSCO - Free Report) is focused on boosting investor sentiment through several growth initiatives and shareholder-friendly moves. To further enhance shareholder value, the company announced a 12.9% hike in its quarterly cash dividend to 35 cents per share compared with the prior rate of 31 cents. This marks the company’s ninth straight year of dividend increase. The new dividend is payable Jun 11, 2019 to shareholders on record as of May 28, 2019.
The company increased the authorization for its share buyback program by $1.5 billion. This brings the total authorizations to date to $4.5 billion. As of Mar 31, 2019, Tractor Supply has repurchased nearly 62.8 million shares for about $2.6 billion since 2007, which marks the inception of its share repurchase plan.
Tractor Supply has always followed a disciplined capital allocation strategy that focuses on making investments to develop business, while returning cash to shareholder through dividend payouts and share buybacks. The company’s strong balance sheet and free cash flow has helped it to execute balanced capital allocation strategy which includes reinvesting in business, increasing dividend and executing share buybacks.
We appreciate Tractor Supply’s efforts to enhance long-term shareholder value. Markedly, dividend hikes not only boost shareholder returns but also raise the market value of a stock. Through this strategy, companies try to win investors and persuade them to either buy or hold the scrip instead of selling it.
Apart from dividend hikes, the company is focusing on growth initiatives, which include expansion of store base and incorporation of technological advancements to induce traffic and drive the top line. It has been improving marketing and merchandising initiatives as well as its supply chain efficiencies to boost profitability.
Moreover, this Zacks Rank #2 (Buy) company remains focused on integrating the physical and digital operations to offer consumers a seamless shopping experience through its "ONETractor" initiative.
Apparently, the company is reaping significant benefits from its Buy Online Pick Up in Store program. This is quite evident from robust double-digit e-commerce sales growth for 27 straight quarters, reported in first-quarter 2019. Moreover, it remains well on track to expand its stockyard in-store kiosk and enhance its mobile POS technologies, which are likely to generate incremental sales.
In the past one year, shares of this Brentwood, TN-based company have gained 47.2%, outperforming the industry’s growth of 25.7%.
3 More Stocks to Watch
Regis Corporation (RGS - Free Report) has a long-term earnings growth rate of 7.5% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Build-A-Bear Workshop, Inc. (BBW - Free Report) has a long-term earnings growth rate of 9% and a Zacks Rank #2.
Stitch Fix, Inc. (SFIX - Free Report) has a long-term earnings growth rate of 22.5% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>