Casey’s stock performance
After delivering solid performances in 2014 (32% rise) and 2015 (33% rise), Casey’s General Stores (CASY) stock lost around 1% of its value in 2016. Calendar 2017 has also not been a great year so far as the stock has fallen 2.5% year-to-date (as of March 1, 2017).
However, food retailing peers Kroger (KR) and Supervalu (SVU) have fallen 7% and 21%, respectively. The food retailing segment has been in rough water as margins and comps have been negatively impacted by rising competition and persistent deflation over the past year.
Casey’s dividend payout
Casey is a consistent dividend-paying company, having paid a regular dividend since 1991. The company has a dividend payout ratio of 17%, meaning it distributes 17% of its earnings to investors via dividends. This is lower than other dividend paying retailers like Wal-Mart Stores (WMT) and Target (TGT), who have payouts of more than 35%.
Casey’s has increased its dividend per share by ~46% over the last five fiscal years. In fiscal 2016, the company paid $0.88 per share in dividends, which was an increment of 10% over the previous year. The company’s stock offers a one-year forward dividend yield of 0.7%, which is lower than those of Walmart (2.6%) and Target (4.3%).
Notably, investors looking for indirect exposure to Casey’s can invest in the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), which has around 2.1% of its holdings invested in the company.
Continue to the next and final part of this series for a look at Wall Street’s take on Casey’s.