Tractor Supply Company Announces Increase in Dividend and Share Repurchase Authorization

Rhea-AI Summary

Tractor Supply Company (NASDAQ: TSCO) has announced two significant shareholder-friendly moves. The Board of Directors increased the quarterly dividend by 4.5% to $0.23 per share ($0.92 annualized) for fiscal year 2025, marking the company's 16th consecutive year of dividend increases. Additionally, the Board authorized a $1 billion increase to its existing share repurchase program, bringing the total authorization to $7.5 billion.

As of December 28, 2024, TSCO had repurchased 357.4 million shares for approximately $6.03 billion since the program's inception in 2007. The company currently operates 2,296 Tractor Supply stores across 49 states and 206 Petsense by Tractor Supply stores in 23 states. The next dividend payment is scheduled for March 11, 2025, to stockholders of record as of February 26, 2025.

Positive

• 16th consecutive year of dividend increases, with a 4.5% raise to $0.92 per share annually
• $1 billion increase in share repurchase authorization, bringing total to $7.5 billion
• Strong balance sheet and cash flow generation reported by management
• Extensive retail presence with 2,296 stores across 49 states

Negative

• None.

Insights

Financial Analyst

The dual announcement of capital return initiatives signals robust financial health and strategic capital deployment at Tractor Supply. The 4.5% dividend increase to $0.92 per share annually, marking 16 consecutive years of growth, demonstrates remarkable consistency in an industry where such track records are rare. This sustained dividend growth through various economic cycles, including the 2008 financial crisis and the COVID-19 pandemic, underscores the resilience of TSCO's business model and cash flow generation capabilities.

The $1 billion expansion of the share repurchase program is equally significant. With $6.03 billion already deployed in buybacks since 2007, the company has shown disciplined execution in capital return programs. The additional authorization, bringing the total to $7.5 billion, represents approximately 5.1% of the current market capitalization, indicating substantial potential for EPS accretion.

These initiatives reflect a balanced approach to capital allocation. While maintaining aggressive shareholder returns, TSCO continues investing in its "Life Out Here 2030" growth strategy, suggesting strong free cash flow generation and a healthy balance sheet. The company's ability to simultaneously fund growth initiatives, maintain dividend increases, and execute substantial buybacks positions it favorably among retail peers and demonstrates management's confidence in long-term business prospects.

• Increases Dividend by 4.5%, Marking the 16^th Consecutive Year of Dividend Increases for the Company
• Raises Share Repurchase Authorization by $1Billion

BRENTWOOD, Tenn.--(BUSINESS WIRE)-- Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the “Company”), today announced that its Board of Directors has increased its dividend by $0.04, or 4.5% year-over-year, to $0.92 per share on an annualized basis for fiscal year 2025. In accordance with this increase, the Board of Directors declared a quarterly cash dividend of $0.23 per share of the Company’s common stock.

In addition, Tractor Supply announced that its Board of Directors authorized a $1 billion increase to its existing share repurchase program, bringing the total amount authorized to date under the program to $7.5 billion. As of December 28, 2024, the Company had repurchased 357.4 million shares of its common stock (adjusted to reflect the effect of stock splits) for approximately $6.03 billion since the inception of its share repurchase program in 2007.

“Tractor Supply’s business remains strong with a long runway for growth ahead as our Life Out Here 2030 strategy takes us through the back half of the decade. Increasing the dividend and authorizing additional share repurchases are supported by our strong balance sheet and cash flow generation that provide us with flexibility to return cash to shareholders while investing in our future,” said Edna Morris, Tractor Supply’s Chairman of the Board.

The dividend will be paid on March 11, 2025 to stockholders of record of the Company’s common stock as of the close of business on February 26, 2025.

About Tractor Supply Company

For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 293 on the Fortune 500. The Company’s more than 50,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.

As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, and Allivet, a leading online pet pharmacy, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.

As of December 28, 2024, the Company operated 2,296 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.

Forward Looking Statements

This press release contains certain forward-looking statements, including statements regarding the Company's plans relating to share repurchases and dividends, plans to return capital to shareholders, business model, growth and results of operations and anticipated investments in the business. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. Forward-looking statements are usually identified by or are associated with such words as “will,” “would,” “intend,” “expect,” “continue,” “believe,” “anticipate,” “optimistic,” “forecasted” and similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to facts outside of our control. These factors include, without limitation, those factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended September 28, 2024. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213897191/en/

Mary Winn Pilkington (615) 440-4212

investorrelations@tractorsupply.com

Source: Tractor Supply Company

FAQ

What is the new dividend amount for Tractor Supply (TSCO) in 2025?

Tractor Supply's new quarterly dividend is $0.23 per share ($0.92 annualized), representing a 4.5% increase from the previous year.

How much did TSCO increase its share repurchase authorization in 2025?

Tractor Supply increased its share repurchase authorization by $1 billion, bringing the total program authorization to $7.5 billion.

When will TSCO pay its next dividend in 2025?

Tractor Supply will pay its next dividend on March 11, 2025, to stockholders of record as of February 26, 2025.

How many shares has TSCO repurchased since 2007?

As of December 28, 2024, Tractor Supply had repurchased 357.4 million shares for approximately $6.03 billion since the program's inception in 2007.

How many consecutive years has TSCO increased its dividend?

Tractor Supply has increased its dividend for 16 consecutive years, with the latest increase announced for fiscal year 2025.