Recently, the board of directors of
) declared a special one- time cash dividend of 50 cents per
share on the company's common stock. The dividend is payable on
December 21, 2012 to stockholders of record as of December 7,
FASTENAL (FAST): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
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Previously, the industrial and construction product supplier had
declared its fourth quarterly cash dividend of 21 cents per share
on the company's common stock on October 10, 2012. The dividend
is payable today, i.e. November 26, 2012 to stockholders of
record as of October 29, 2012.
A peer of
Home Depot Inc.
), Fastenal had earlier increased its dividend payout for fiscal
2012. The company paid a dividend of 74 cents per share for
fiscal 2012 compared with 65 cents for fiscal 2011. The increased
dividend can be attributed to the company's strong liquidity
position throughout 2011 and 2012. As of September 30, 2012,
Fastenal had cash and cash equivalents of $195.6 million, higher
than $185.9 million as of June 30, 2012.
After prolonged decline in daily sales growth in the first half
of fiscal 2012, Fastenal benefited from increase in manufacturing
customers and non residential construction customers, driven by
improvement in the construction market. As a result, daily sales
grew 6.8% in the month of October 2012, which is an encouraging
Moreover, Fastenal is accelerating its vending contract signings
and installations. We are also encouraged by Fastenal's numerous
growth drivers like government business and metalworking, which
are gaining traction and will help to achieve future
profitability. Other than that, the company's strategy of new
store openings positions it well for future growth.
We currently have a 'Neutral' recommendation on Fastenal over the
long term. The stock carries a Zacks #3 Rank that translates into
a short-term 'Hold' rating.