Has Casey’s Been a Good Investment for Its Shareholders?

Sonya Bells - Author

Jun. 10 2016, Updated 11:06 a.m. ET

A look at Casey’s stock performance compared to its peers’

Casey’s General Stores (CASY) registered a 3.2% fall in its stock price on the day following its fiscal 4Q16 results announcement, as the company missed its earnings expectations.

Casey’s has risen by 3.6% YTD (year-to-date) as of June 7, 2016. The company is currently trading at $119.72. Its performance is in line with that of the S&P 500 Index, which has risen by 4.8% YTD.

Casey’s peers CST Brands (CST) and Murphy USA (MUSA) have given higher returns to shareholders compared to Casey’s. CST’s and MUSA’s YTD returns stand at 13.9% and 13.5%, respectively, as of June 7, 2016. However, Casey’s has done better than Sunoco (SUN), which has fallen by 14.8% YTD.

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A look at Casey’s dividend payout

Casey’s is a consistent dividend payer. It has paid regular dividends since 1991. Despite an unstable earnings environment, the company has increased its dividend per share by ~46% over the last five fiscal years. Casey’s stock is currently trading at a forward dividend yield of 10% over the next four quarters.

The company grew its dividends by 10% in fiscal 2016 and paid 88 cents per share in dividends during the year. The company has raised its quarterly dividend payment by 9.1% to 24 cents per share. This dividend will be payable on August 15, 2016.

Casey’s is a dividend aristocrat and is included in the holdings of the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL). REGL invests in companies that have grown their dividends for at least 15 consecutive years. REGL has around 2.2% of its holdings invested in Casey’s.

Casey’s boasts the highest total returns among its peers

Casey’s consistent performance has yielded high returns for its shareholders. The company’s one-year, three-year, and five-year total returns stand at 38%, 25.5%, and 25.7%, respectively. Its performance is better than those of its convenience store and fuel station peers.

Sunoco’s, CST Brands’, and Murphy USA’s one-year total returns stand at -15.7%, 14.5%, and 20.3%, respectively.

Read the next part of this series to learn about the company’s earnings forecasts and valuations compared to its peers’.


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