Casey's General Stores (NASDAQ:CASY) Is Due To Pay A Dividend Of US$0.35

Simply Wall St
·2 min read

Casey's General Stores, Inc. (NASDAQ:CASY) will pay a dividend of US$0.35 on the 15th of February. Including this payment, the dividend yield on the stock will be 0.7%, which is a modest boost for shareholders' returns.

View our latest analysis for Casey's General Stores

Casey's General Stores' Payment Has Solid Earnings Coverage

If it is predictable over a long period, even low dividend yields can be attractive. However, Casey's General Stores' earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 12.3%. If the dividend continues along recent trends, we estimate the payout ratio will be 17%, which is in the range that makes us comfortable with the sustainability of the dividend.

historic-dividend
historic-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 2012, the dividend has gone from US$0.54 to US$1.40. This implies that the company grew its distributions at a yearly rate of about 10.0% over that duration. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

We Could See Casey's General Stores' Dividend Growing

Investors could be attracted to the stock based on the quality of its payment history. Casey's General Stores has seen EPS rising for the last five years, at 8.3% per annum. Casey's General Stores definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Casey's General Stores' Dividend

Overall, we like to see the dividend staying consistent, and we think Casey's General Stores might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Casey's General Stores that you should be aware of before investing. We have also put together a list of global stocks with a solid dividend.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.