Fastenal Company (NASDAQ:FAST) Announces Dividend Increase – $0.26 Per Share

Fastenal Company (NASDAQ:FAST) declared a quarterly dividend on Friday, July 10th. Investors of record on Tuesday, July 28th will be paid a dividend of 0.26 per share on Tuesday, August 25th. This represents a c) annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, July 28th. This is a 8.3% increase from Fastenal’s previous quarterly dividend of $0.24.

Fastenal has raised its dividend by an average of 0.0%per year over the last three years and has raised its dividend every year for the last 26 years. Fastenal has a payout ratio of 86.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Fastenal to earn $1.38 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 75.4%.

Fastenal Price Performance

NASDAQ FAST opened at $47.02 on Friday. The stock has a 50-day simple moving average of $45.92 and a 200 day simple moving average of $45.35. Fastenal has a twelve month low of $38.97 and a twelve month high of $50.63. The stock has a market capitalization of $53.96 billion, a PE ratio of 39.85, a P/E/G ratio of 2.94 and a beta of 0.72. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.21 and a current ratio of 4.18.

Fastenal (NASDAQ:FAST) last released its earnings results on Tuesday, July 14th. The company reported $0.33 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.33. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.The firm had revenue of $2.39 billion for the quarter, compared to analyst estimates of $2.34 billion. During the same quarter last year, the firm posted $0.29 EPS. The company’s revenue was up 14.7% on a year-over-year basis. Research analysts anticipate that Fastenal will post 1.25 EPS for the current year.

Analysts Set New Price Targets

Several research analysts have recently issued reports on FAST shares. Jefferies Financial Group restated a “buy” rating on shares of Fastenal in a report on Thursday, June 4th. Bank of America increased their target price on shares of Fastenal from $48.00 to $55.00 in a research note on Monday, April 13th. Robert W. Baird decreased their target price on Fastenal from $52.00 to $50.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 14th. Barclays reduced their price objective on Fastenal from $47.00 to $46.00 and set an “equal weight” rating for the company in a research report on Thursday, July 16th. Finally, Wolfe Research reissued an “underperform” rating and set a $47.00 price objective on shares of Fastenal in a report on Thursday, July 9th. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Fastenal has an average rating of “Hold” and a consensus price target of $48.83.

About Fastenal

Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.

Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.