Fastenal Company Announces Cash Dividend and Share Repurchase Activity

Rhea-AI Summary

Fastenal Company (Nasdaq: FAST) has declared a quarterly dividend of $0.35 per share, payable on March 2, 2023, to shareholders recorded as of February 2, 2023. This continues the company's history of dividend payments, initiating in 1991 and evolving to quarterly distributions since 2011. In the previous year, Fastenal paid a total of $1.24 in dividends per share. The board intends to maintain quarterly dividends, contingent on financial performance and other factors. Additionally, the company has the authority to repurchase up to 6,200,000 shares under a previous authorization.

Positive

• Declared a quarterly dividend of $0.35 per share, enhancing shareholder value.
• Total dividends paid in 2022 amounted to $1.24 per share, indicating a consistent dividend growth.
• Share repurchase authorization of up to 6,200,000 shares may support stock price and reduce outstanding shares.

Negative

• None.

WINONA, Minn.--(BUSINESS WIRE)-- Fastenal Company (Nasdaq:FAST) reported its board of directors declared a dividend of $0.35 per share to be paid in cash on March 2, 2023 to shareholders of record at the close of business on February 2, 2023. 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 2023, 2022, and 2021, we paid (or declared) dividends as follows:

Year		First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
2023		$	0.35
2022		$	0.31		$	0.31		$	0.31		$	0.31		$	1.24
2021		$	0.28		$	0.28		$	0.28		$	0.28		$	1.12

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
2023	One (1)		$	199.8			$	0.35			$	—		$	0.35			$	—			—			$	—
2022	Four		$	711.3			$	1.24			$	—		$	1.24			$	237.8			5,000,000			$	47.58
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
Ten Year Total			$	4,638.1			$	7.65			$	0.40		$	8.05			$	880.8			34,200,000			$	25.75

(1)	The Total Dividends Paid amount includes the estimated impact from this announcement. The estimate is calculated using the 570.8 million shares outstanding at December 31, 2022.
(2)	There was a supplemental dividend paid in December 2020.

In the fourth quarter of 2022, the company purchased 2,000,000 shares of its common stock at an average price of $46.62 per share.

We have authority to purchase up to 6,200,000 additional shares of our common stock under the July 12, 2022 authorization. This authorization does not have an expiration date.

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

About Fastenal

Fastenal provides a broad offering of industrial supplies, including fastener, safety, and metal cutting products, to manufacturing, construction, and state and local government customers through approximately 3,300 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 tagline, 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.

Cautionary Note Regarding Forward-Looking Statements

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/20230118005976/en/

Taylor Ranta Oborski

Financial Reporting & Regulatory Compliance Manager

507.313.7959

Source: Fastenal Company

FAQ

What is the dividend amount declared by Fastenal in 2023?

Fastenal declared a dividend of $0.35 per share for 2023.

When will Fastenal's dividend be paid?

The dividend will be paid on March 2, 2023, to shareholders of record as of February 2, 2023.

How much has Fastenal paid in dividends in the last few years?

In 2022, Fastenal paid a total of $1.24 per share in dividends, while in 2021 it was $1.12 per share.

How many shares can Fastenal repurchase under its current authorization?

Fastenal has the authority to repurchase up to 6,200,000 shares of its common stock.

What is the history of Fastenal's dividend payments?

Fastenal has paid annual dividends since 1991, transitioned to semi-annual in 2003, and quarterly since 2011.