Driven by strong positive outlook, the farm and ranch store
Tractor Supply Company
) is going for a 2-for-1 stock split of its common shares in
September this year. This move will mark the company's fourth
2-for-1 stock split since 2002.
Tractor Supply is expected to distribute the additional shares
relating to the split on Sep 26 this year to shareholders of
record date as of Sep 18, 2013. This will bring Tractor Supply's
total shares outstanding to 139.6 million of a par value of 0.4
cents from 69.8 million of a par value of 0.8 cents as of Jul 27,
Prior to this, on Aug 1, Tractor Supply declared a quarterly
cash dividend of 26 cents per share, payable on Sep 4, 2013 to
shareholders of record date as of Aug 19. The company has
regularly paid dividends since 2010, when it gave a payout of 7
cents per share to shareholders on Mar 11. Since then, this Zacks
Rank #2 (Buy) stock has increased dividend payment more than
The strength of Tractor Supply's business model is reflected
in its strong cash generation capabilities and commitment to
enhance shareholder value. We believe that continued dividend
hikes and stock splits will increase investors' confidence.
Tractor Supply's strong balance sheet and cash flows provide
the company financial flexibility to adopt shareholder-friendly
moves, and go for R&D investments as well as business
expansions. During the first six months of fiscal 2013, Tractor
Supply shelled out $105.4 million on cash dividends and share
repurchases. Cash and cash equivalents were $55.7 million as of
Jun 29, 2013, while Tractor Supply generated $62.8 million of
cash from operational activities. We remain encouraged by Tractor
Supply's strong cash position and its ability to service
In recent times, other companies have also announced stock
splits. These include
Steven Madden Ltd.
) that announced a 3-for-2 split, while
DeVita HealthCare Partners Inc.
West Pharmaceutical Services, Inc.
) both declared a 2-for-1 split.
Though splitting shares has no real impact on the company's
performance or share prices, it makes shares affordable to small
investors. Through stock splits and dividend hikes, companies
persuade investors to either buy or hold the scrip instead of
selling it. Looking ahead, Tractor Supply remains confident of
its growth potential and its ability to boost shareholders'
confidence through dividend payouts and share buybacks.
DAVITA INC (DVA): Free Stock Analysis Report
STEVEN MADDEN (SHOO): Free Stock Analysis
TRACTOR SUPPLY (TSCO): Free Stock Analysis
WEST PHARM SVC (WST): Free Stock Analysis
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