Market reaction to Casey’s fiscal 3Q17 earnings release
As Casey’s General Stores (CASY) failed to meet expectations with its fiscal 3Q17[1. quarter ended January 31, 2017] results on March 6, 2017, the company’s stock price fell 3.9% and closed at $109.78 on March 7. Year-to-date (or YTD), the company has lost 7.7% of its value and is trading 21% below its 52-week high price.
In comparison, convenience store peers CST Brands (CST) and Murphy USA are still in the green and have registered YTD gains of 0.4% and 7.2%, respectively. However, supermarket players Kroger (KR) and SuperValu (SVU) are down 16.5% and 28.5%, respectively, year-to-date through March 7, 2017.
CASY announces dividends and share repurchase program
Casey’s General Stores (CASY) has paid regular dividends since 1991. Along with its fiscal 3Q17 earnings release, CASY announced a dividend of $0.24 per share, which is in line with the previous quarter. The dividend is payable on May 15, 2017.
The company also announced a share repurchase program of $300 million, which would be valid for the next two years.
A look at CASY’s dividend yield
Casey’s General Stores stock offers a one-year forward dividend yield of 0.8%, which is lower than the yields offered by dividend-paying retailers Walmart (2.7%) and Target (4.5%).
CASY has a dividend payout ratio of 19%. In comparison, Walmart and Target have payouts of more than 35%. CST Brands, however, has a dividend payout as low as 3%.
Investors looking for exposure to CASY can invest in the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), which has ~2% of its holdings invested in the company.
In the final part of this series, we’ll look at the latest Wall Street outlook on Casey’s General Stores.