8. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 40
Tractor Supply Company (NASDAQ:TSCO) is an American farm supplies company, based in Tennessee. The company sells home improvement and related equipment and supplies. In the fourth quarter of 2024, it reported net sales of approximately $3.8 billion, marking a 3% increase from the previous year. This growth was supported by new store openings and an uptick in comparable store sales. Earnings per share (EPS) for the quarter came in at $0.44, reflecting a slight 3% decline year over year. However, both net sales and EPS fell slightly short of expectations. Gross profit rose by 2.8% to $1.33 billion, compared to $1.29 billion in the same period last year.
Tractor Supply Company (NASDAQ:TSCO) recently expanded its presence in the pet care sector through the acquisition of Allivet, a pet pharmacy business. With more than 200 pet stores under the Petsense brand and pet products available at its Tractor Supply locations, this acquisition presents an additional avenue for growth, albeit at a gradual pace. In the past 12 months, the stock has surged by nearly 11%.
Tractor Supply Company (NASDAQ:TSCO) also maintained a solid cash position, ending the quarter with approximately $252 million in cash and cash equivalents. For the full year 2024, the company generated $1.4 billion in operating cash flow. This financial strength enabled it to distribute $472.5 million in dividends to shareholders during the year.
Tractor Supply Company (NASDAQ:TSCO) recently announced that its Board of Directors has raised its dividend by $0.04, representing a 4.5% year-over-year increase, bringing it to $0.92 per share on an annualized basis for fiscal year 2025. Following this adjustment, the Board also declared a quarterly cash dividend of $0.23 per share for its common stock. This was the company’s 16th consecutive year of dividend growth, which makes TSCO one of the best dividend stocks on our list. The stock has a dividend yield of 1.68%, as of March 4.
