Benefits of Investing in Tractor Supply Stock for Dividend Investors

3 Reasons Dividend Investors Should Love Tractor Supply Stock

This shareholder-friendly company looks poised to keep on winning over the next five years and beyond. Tractor Supply (NASDAQ: TSCO) recently reminded investors of one of the reasons why it's a great long-term investment for income investors. In February, the rural lifestyle retailer announced it was raising its dividend, marking its 15th year in a row of dividend increases and putting the dividend far higher than it was just a few years ago.

1. A solid dividend yield

After announcing a 7% increase to its quarterly dividend earlier this year, the regular payment now amounts to $1.10. This puts total annual payments at $4.40, giving Tractor Supply a dividend yield of more than 1.7% at the time of this writing.

• Primary reason: Tractor Supply's consistent dividend growth rate over the years.
• Comparison: Tractor Supply's dividend yield against S&P 500 and NASDAQ 100 indices.

2. Strong dividend growth potential

Not only do Tractor Supply investors get access to the potential appreciation of the underlying stock price, but they tap into a dividend likely to continue growing, backed by a low payout ratio and successful financial management.

3. A good management team

Tractor Supply CEO Hal Lawton and CFO Kurt Barton have played instrumental roles in driving the company's growth trajectory through strategic initiatives, acquisitions, and shareholder-friendly actions like dividend payments and share repurchases.

Tractor Supply remains a favored stock for investors seeking long-term dividend growth and potential share price appreciation, despite current valuation levels.