Fastenal Company Announces Cash Dividend and New Share Repurchase Authorization

Rhea-AI Summary

Fastenal Company (Nasdaq:FAST) announced a quarterly dividend of $0.31 per share, payable on August 24, 2022, to shareholders recorded by July 27, 2022. Fastenal has consistently paid dividends since 1991, moving from annual to quarterly payments since 2011. In addition, the company initiated a stock repurchase plan, allowing up to 8 million shares to be repurchased. Financial data reveals a total dividend payout of $535 million in 2022, with an average dividend per share of $0.93. The board intends to continue dividends based on financial health.

Positive

• Quarterly dividend of $0.31 enhances shareholder value.
• Board authorized additional buyback of up to 8 million shares.
• Consistent dividend payments since 1991 demonstrate financial stability.
• Total dividend payout of $535 million in 2022 indicates strong cash flow.

Negative

• None.

WINONA, Minn.--(BUSINESS WIRE)-- Fastenal Company (Nasdaq:FAST) reported its board of directors declared a dividend of $0.31 per share to be paid in cash on August 24, 2022 to shareholders of record at the close of business on July 27, 2022. Except for share and per share information, dollar amounts are stated in millions.

Fastenal began paying annual dividends in 1991, semi-annual dividends in 2003, and then expanded to quarterly dividends in 2011. In addition to these regular dividend payments, Fastenal has previously paid special one-time dividends in December 2008, December 2012, and December 2020. Our board of directors currently intends to continue paying quarterly dividends, though all future determination as to payment of dividends will depend upon the financial condition and results of operations of the company and such other factors as are deemed relevant by the board of directors, such as income tax rates related to dividends at that time.

In 2022, 2021, and 2020, we paid (or declared) dividends as follows:

Year		First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Sub-Total (Regular)			Fourth Quarter (Special)			Total
2022		$	0.31		$	0.31		$	0.31
2021		$	0.28		$	0.28		$	0.28		$	0.28		$	1.12		$	0.00		$	1.12
2020		$	0.25		$	0.25		$	0.25		$	0.25		$	1.00		$	0.40		$	1.40

Dividend and common stock purchase activity during the last ten years:

																								Average Per
		Total				Dividends per Share											Total Value of				Total Number			Share Price of
	Dividend	Dividends				Regular					Special			Total			Common Stock				of Shares			Common Stock
Year	Payments	Paid				Dividend					Dividend			Dividend			Purchased				Purchased			Purchased
2022	Three (1)		$	535.0			$	0.93			$	—		$	0.93			$	49.3			1,000,000			$	49.29
2021	Four		$	643.7			$	1.12			$	—		$	1.12			$	—			—			$	—
2020	Five (2)		$	803.4			$	1.00			$	0.40		$	1.40			$	52.0			1,600,000			$	32.54
2019	Four		$	498.6			$	0.87			$	—		$	0.87			$	—			—			$	—
2018	Four		$	441.9			$	0.77			$	—		$	0.77			$	103.0			4,000,000			$	25.75
2017	Four		$	369.1			$	0.64			$	—		$	0.64			$	82.6			3,800,000			$	21.72
2016	Four		$	346.6			$	0.60			$	—		$	0.60			$	59.5			3,200,000			$	18.58
2015	Four		$	327.1			$	0.56			$	—		$	0.56			$	293.0			14,200,000			$	20.63
2014	Four		$	296.6			$	0.50			$	—		$	0.50			$	52.9			2,400,000			$	22.06
2013	Four		$	237.5			$	0.40			$	—		$	0.40			$	9.1			400,000			$	22.70
Ten Year Total			$	4,499.5			$	7.39			$	0.40		$	7.79			$	701.4			30,600,000			$	22.92

⁽¹⁾ The Total Dividends Paid amount includes the estimated impact from this announcement. The estimate is calculated using the 574.7 million shares outstanding at June 30, 2022.

⁽²⁾ There was a supplemental dividend paid in December 2020.

In the second quarter of 2022, the company purchased 1,000,000 shares of its common stock.

As of June 30, 2022, we had remaining authority to repurchase 2,200,000 shares under the July 11, 2017 authorization. On July 12, 2022, the board of directors authorized repurchases by the company of up to an additional 8,000,000 shares of its common stock. These authorizations do not have an expiration date.

All share and per share information reflects the two-for-one stock split in 2019.

About Fastenal

Fastenal supplies a broad offering of industrial, construction, and safety products via more than 3,200 in-market locations (branches and customer-specific Onsite locations) spanning 25 countries. With continual investment in tailored local inventory, dedicated local experts, and flexible FMI^® (Fastenal Managed Inventory) and digital solutions, we help our business partners achieve product and process savings across the supply chain – a “high-touch, high-tech” approach encapsulated by our motto, Where Industry Meets Innovation^™. Our local service teams are supported by 16 regional distribution centers, a captive logistics fleet, multiple teams of industry specialists and support personnel, and robust sourcing, quality, and manufacturing resources, enabling us to grow by getting closer to customers and providing innovative and comprehensive solutions to customer supply chain challenges.

Additional information regarding Fastenal is available on the Fastenal Company website at www.fastenal.com.

This press release contains statements that are not historical in nature and that are intended to be, and are hereby identified as, "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including a statement regarding expectations as to payment of a quarterly cash dividend in the foreseeable future. Any future determination as to payment of dividends will depend upon the financial condition and results of operations of the company and such other factors as are deemed relevant by the board of directors. For example, a change in business needs including working capital and funding for acquisitions, or a change in income tax law relating to dividends, could cause the company to decide not to pay a dividend in the future or not to repurchase common stock pursuant to the existing share repurchase authorization. A discussion of other risks and uncertainties is included in the company's filings with the SEC, including our most recent annual and quarterly reports. FAST-D

View source version on businesswire.com: https://www.businesswire.com/news/home/20220712005802/en/

Ellen Stolts

Director of Accounting - Reporting and Reconciliation

507.313.7282

Source: Fastenal Company

FAQ

What is the dividend amount declared by Fastenal in 2022?

Fastenal declared a dividend of $0.31 per share to be paid on August 24, 2022.

When will Fastenal's dividend be paid?

The dividend will be paid on August 24, 2022, to shareholders recorded by July 27, 2022.

How much in dividends did Fastenal pay in 2022?

Fastenal paid a total of $535 million in dividends in 2022.

What stock repurchase plan has Fastenal initiated?

Fastenal's board authorized the repurchase of up to 8 million shares of common stock.

How has Fastenal's dividend policy changed over the years?

Fastenal moved from annual dividends in 1991 to quarterly dividends in 2011.