Tractor Supply Company
) is an intriguing option for investors seeking both growth and
income. The operator of farm and ranch stores in the U.S.
announced its decision of a dividend hike, reflecting its plan of
utilizing free cash to enhance shareholders' return, thereby
boosting investors' confidence in the stock.
The Brentwood, TN-based company, raised its quarterly dividend
by 23% to 16 cents (or 64 cents annually) from 13 cents a share
(or 52 cents annually). The increased dividend will be paid on
Jun 3, 2014, to stockholders of record as of May 19. The dividend
yield based on the new payout and the last closing market price
is approximately 1%.
Dividend hikes not only enhance shareholder's return but raise
the market value of the stock. Through this strategy, the
companies try to win investors, thereby persuading them to either
buy or hold the scrip instead of selling them.
Investors prefer an income generating stock and a dividend
paying stock is always a preferable option. People looking for
regular income from stocks are most likely to be inclined toward
those companies that have a track record of consistent and
incremental dividend payment.
Other companies that recently increased quarterly dividend
Costco Wholesale Corp.
). The companies raised their dividends by 8% to $3.29 and 14.5%
to 35.5 cents, respectively. Another company,
) recently hiked its dividend by 27% to 35 cents.
We believe that Tractor Supply continues to progress well with
its growth initiatives, which include expanding its store base
and incorporating technological advancements to serve clients
better. This Zacks Rank #3 (Hold) company leverages an extensive
network of stores to penetrate into target markets, which in
turn, enables the company to generate healthy sales and gain
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