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A Look at Casey’s Dividend Yields and Stock Market Performance

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Jun. 1 2017, Updated 9:08 a.m. ET

Casey’s stock performance

As a result of weaker-than-expected results, Casey’s General Stores (CASY) stock has fallen about 2.6% this year. It’s currently trading at $115.78, or ~18.0% below its 52-week high. In comparison, convenience store players CST Brands (CST) and Murphy USA (MUSA) have managed to stay positive, rising 0.50% and 11.2%, respectively, to date.

Supermarket players have also delivered mixed performances. The stock prices of Kroger (KR) and Supervalu (SVU) have fallen ~15.0% and ~18.0% YTD, respectively. On the other hand, Whole Foods Market (WFM) and Sprouts Farmers Market (SFM) have risen 14.0% and 27.0%, respectively, to date.

Big box retailers Walmart (WMT) and Costco (COST) have also risen ~13.0% and ~16.0%, respectively.

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A look at Casey’s dividend payments

Casey has paid regular dividends since 1991. It increased its dividend per share at a CAGR (compound annual growth rate) of 10.0% between fiscal 2012 and fiscal 2016. It paid $0.88 in dividends in fiscal 2016, which was a rise of 10.0% YoY (year-over-year). For fiscal 2017, annualized dividends are $0.94, which is 7.0% more than the previous year.

Casey’s has a dividend payout ratio of 17.0%, which means it distributes 17.0% of its earnings to investors as dividends. That’s lower than dividend-paying retailers Walmart (WMT) and Target (TGT), which have dividend payout ratios of 34.0% and 50.0%, respectively.

The company’s stock offers a one-year forward dividend yield of just 0.80%, which is lower than Walmart’s at 2.4% and Target’s at 4.6%.

Investors looking for exposure to Casey’s can invest in the ProShares S&P MidCap 400 Dividend Aristocrats (REGL), which has about 2.2% of its holdings invested in the company.

In the next part of this series, we’ll find out how Wall Street analysts are rating Casey’s.

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