If you live in a medium sized city or larger, you may have never heard of the Tractor Supply Company. But if you live in the country you're as familiar with this company as you are with Walmart, Home Depot and Lowe's. For the Farmer and the Rancher, this store has everything they need and more.
Tractor Supply Company operates rural lifestyle stores in the United States. It offers a wide selection of merchandise for equine, livestock, pet, and small animals necessary for their health, care, growth, and containment. They also offer hardware, truck, towing, and tool products; seasonal products, such as heating products, lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear; and maintenance products for agricultural and rural use. As of December 27, 2014, the company operated 1,382 retail stores under the names of Tractor Supply Company, Del’s Feed & Farm Supply, and HomeTown Pet in 49 states and operates the Website at TractorSupply.com. The company targets its products to recreational farmers, ranchers, tradesmen and small businesses. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee. (Summary) (Company) (Daily Chart)
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5 May 2015
Price $85.89 1yr Target $97.61 Analysts 22 1yr Cap Gain 13.64% Dividend $0.80 Yield 0.93% 1yr Est Tot Return 14.57% 1yr DivGR 24.48% 2yr DivGR 30.17% 3yr DivGR 42.17 P/E 31.35 PEG 2.02 |
Market Cap $11.72 Bil
Beta 1.20 EPS (ttm) $2.74 Payout Ratio 29.19% EPS next yr $3.55 Forward P/E 24.19 Debt/Equity 0.05 ROA 17.70% ROE 29.80% ROI 28.70% Sales $5.86 Bil Income $380.10 Mil Profit Margin 6.48% |
My Perspective
I've looked at this stock for quite a long time now. It never shows up on my screeners simply because of its low yield. But since I often frequent their stores and their parking lots are always full, I follow it anyway. In the last five years Tractor Supply stock has moved five fold, from around $16 to $85 per share. By any measure that's an excellent increase in the value of the company over a relatively short period of time. This company is also a perfect example of why any investor should keep his eyes open for those unique situations and those one of a kind companies that may be outside the investor's normal sphere of interest.
I expect to initiate a small position in Tractor Supply in the near future and then build on that position over time, despite the company's low dividend yield. While the dividend track record is short, the dividend growth has been spectacular. The company tends to raise their dividend in the spring each year and this year once again they raised their dividend 25% to $0.20 per quarter. I have no reason to believe that this will end anytime soon and I'd like to own any stock that growing its dividend that fast. Because I'm a Dividend Growth Investor!
I've looked at this stock for quite a long time now. It never shows up on my screeners simply because of its low yield. But since I often frequent their stores and their parking lots are always full, I follow it anyway. In the last five years Tractor Supply stock has moved five fold, from around $16 to $85 per share. By any measure that's an excellent increase in the value of the company over a relatively short period of time. This company is also a perfect example of why any investor should keep his eyes open for those unique situations and those one of a kind companies that may be outside the investor's normal sphere of interest.
I expect to initiate a small position in Tractor Supply in the near future and then build on that position over time, despite the company's low dividend yield. While the dividend track record is short, the dividend growth has been spectacular. The company tends to raise their dividend in the spring each year and this year once again they raised their dividend 25% to $0.20 per quarter. I have no reason to believe that this will end anytime soon and I'd like to own any stock that growing its dividend that fast. Because I'm a Dividend Growth Investor!
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