The board of Tractor Supply voted to increase the farm and ranch products retailer’s quarterly dividend to 26 cents per share, a 30 percent rise from where it now stands.
The new payout rate, which will take Tractor Supply’s dividend yield to about 1 percent, will apply to shareholders of record on May 20 and be paid on June 4. The Brentwood-based company launched its dividend three years ago, when it began paying 14 cents per share per quarter.
“Our dividend program, initiated in 2010, is a key component of our balanced capital allocation strategy, combined with capital investments and share repurchases. These programs are designed to drive shareholder value,” said President and CEO Greg Sandfort. “This 30% dividend increase reflects our Board's continued confidence in the Tractor Supply business model and our team's ability to execute the Company's long-term growth strategy.”
Shares of Tractor Supply (Ticker: TSCO) rose on Thursday on the news. At noon Central, they were up almost 4 percent to about $109. Year to date, they’ve climbed more than 20 percent.