October 15, 2025 a 03:31 pm
TSCO: Dividend Analysis - Tractor Supply Company
Tractor Supply Company, a key player in the retail sector, presents an intriguing dividend profile with a history of 16 consecutive years of dividend growth. With a steady dividend yield and stable financials, the company continues to catch the attention of dividend investors. Its prudent capital management policies further underscore its commitment to delivering shareholder value through consistent payouts. The current environment showcases its resilience amidst economic cycles.
📊 Overview
| Metric | Details |
|---|---|
| Sector: | Retail |
| Dividend yield: | 1.48% |
| Current dividend per share: | $0.88 USD |
| Dividend history: | 16 years |
| Last cut or suspension: | None |
🗣️ Dividend History
The steady history of dividend payments over 16 years demonstrates Tractor Supply's ability to consistently generate and distribute cash among its shareholders, making it a reliable income investment.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.69 |
| 2024 | 0.88 |
| 2023 | 0.824 |
| 2022 | 0.736 |
| 2021 | 0.416 |
📈 Dividend Growth
Dividend growth is a crucial indicator of a company's financial health and its commitment to enhancing shareholder value through rising payouts.
| Time | Growth |
|---|---|
| 3 years | 28.37% |
| 5 years | 26.47% |
The average dividend growth is 26.47% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio, an essential measure, evaluates a company's capacity to sustain dividend payouts from earnings and free cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | 42.92% |
| Free cash flow-based | 56.86% |
The EPS payout ratio of 42.92% and FCF payout ratio of 56.86% indicate a sound balance that supports ongoing dividends, suggesting financial prudence.
🔍 Cashflow & Capital Efficiency
Key cash flow and capital efficiency ratios reveal the firm's liquidity and financial health, ensuring sufficient cash generation to cover investments and dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.17% | 2.47% | 2.33% |
| Earnings Yield | 3.76% | 4.72% | 4.35% |
| CAPEX to Operating Cash Flow | 0.55 | 0.57 | 0.57 |
| Stock-based Compensation to Revenue | 0.32% | 0.39% | 0.38% |
| Free Cash Flow / Operating Cash Flow Ratio | 0.45 | 0.43 | 0.43 |
The cash flow stability and efficiency ratios reflect robust liquidity, allowing for continued investments and dividend payouts.
🧮 Balance Sheet & Leverage Analysis
Analyzing balance sheet ratios offers insight into financial stability, particularly regarding debt levels and asset liquidity, crucial for long-term resilience.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 2.39 | 2.34 | 2.09 |
| Debt-to-Assets | 0.55 | 0.55 | 0.50 |
| Debt-to-Capital | 0.70 | 0.70 | 0.68 |
| Net Debt to EBITDA | 2.74 | 2.48 | 2.29 |
| Current Ratio | 1.28 | 1.50 | 1.33 |
| Quick Ratio | 0.20 | 0.28 | 0.19 |
| Financial Leverage | 4.32 | 4.27 | 4.16 |
The balance sheet reveals a high leverage but manageable debt levels, supported by solid financial structures with ample liquidity.
🔍 Fundamental Strength & Profitability
Profitability metrics like return ratios and margins highlight the company's ability to generate earnings relative to its resources, essential for sustaining growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 48.51% | 51.51% | 53.31% |
| Return on Assets | 11.23% | 12.05% | 12.82% |
| Net Margin | 7.40% | 7.61% | 7.66% |
| EBIT Margin | 9.86% | 10.16% | 10.10% |
| EBITDA Margin | 12.86% | 12.86% | 12.52% |
| Gross Margin | 36.26% | 35.92% | 35.00% |
| R&D to Revenue | 0% | 0% | 0% |
The strong profitability ratios and stable margins underpin Tractor Supply's robust earnings potential and operational efficiency.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🏆 Rating
Overall, Tractor Supply Company offers a strong dividend profile with notable stability and growth in its payouts. The company's consistent financial performance and strategic capital management make it an appealing choice for income-focused investors. Recommended as a robust addition to a diversified dividend portfolio.