Tractor Supply Company TSCO cheered investors by enhancing shareholder returns at a time when most companies are suspending dividends and share repurchases due to the hardships posed by the coronavirus outbreak. The company announced the 10th successive quarterly dividend hike. It will now pay out a dividend of 40 cents per share, suggesting a 14.3% rise from the prior rate of 35 cents. The increased dividend will be paid out on Sep 9 to shareholders of record as of Aug 24, 2020.
The latest dividend hike brings its annualized dividend to $1.40 per share versus the prior rate of $1.36. Notably, the company has a five-year annualized dividend growth rate of 13.7%, reflecting dividend increases for five consecutive years. Based on its share price of $148.10 on Aug 7, Tractor Supply currently has a dividend yield of 0.9%. Moreover, the company’s current dividend payout ratio is 23.9%.
Dividend payouts are