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General Stores Casey’s, Inc. (NASDAQ: CASY) the dividend will increase to $ 0.35 on November 15. Even though the dividend has increased, the yield is still quite low at just 0.7%.
See our latest review for Casey’s general stores
Casey’s General Stores payment has strong revenue coverage
While return is important, another factor to consider regarding a company’s dividend is whether current payout levels are achievable. However, Casey’s General Stores profits easily cover the dividend. This means that most of what the business earns is used to help it grow.
Next year, EPS is expected to rise 8.8%. If the dividend continues according to recent trends, we estimate the payout rate will be 16%, which is within the range that puts us at ease with the sustainability of the dividend.
Casey’s General Stores has a solid track record
Even over a long history of paying dividends, the company’s distributions have been remarkably stable. Since 2011, the dividend has increased from US $ 0.54 to US $ 1.40. This works out to a compound annual growth rate (CAGR) of about 10.0% per year over that time period. The dividend has increased very well for several years and has provided its shareholders with good income in their portfolios.
Casey’s general stores could increase their dividend
Investors in the company will be happy to receive dividends for some time. We are encouraged to see that Casey’s General Stores has grown its earnings per share by 7.2% per year over the past five years. With decent growth and a low payout ratio, we think this bodes well for Casey’s General Stores prospects for increasing its dividend payouts going forward.
We really love Casey’s general stores dividend
Overall, a dividend increase is always good, and we think Casey’s General Stores is a solid income stock thanks to its track record and earnings growth. Profits easily cover distributions and the company generates a lot of cash. Overall, this ticks a lot of the boxes that we look for when choosing an income stock.
It is important to note that companies with a consistent dividend policy will generate greater investor confidence than those with an erratic policy. At the same time, there are other factors that our readers should be aware of before investing any capital in a stock. Taking the debate a step further, we identified 2 warning signs for Casey’s general stores that investors need to be aware of moving forward. We have also set up a list of global stocks with a solid dividend.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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