Tractor Supply Company (TSCO) operates rural lifestyle retail stores in the United States. The company sells its products to recreational farmers, ranchers, and others, as well as tradesmen and small businesses. Tractor Supply Company was founded in 1938 and is headquartered in Brentwood, Tennessee.
The company provides livestock and pet products (47% of 2020 sales); hardware, tools, truck, and towing (21%); seasonal products (such as snow blowers and mowers), gifts, and toys (21%); clothing and footwear (7%); and agriculture (4%).
As of December 2020, it operated 1,923 Tractor Supply retail stores in 49 states. The company operates its retail stores under the Tractor Supply Company, Del's Feed & Farm Supply, and Petsense names.
The company had 182 Petsense stores at the end of 2020. It also operates Websites under the TractorSupply.com and Petsense.com names.
Tractor Supply has managed to increase dividends every year, since initiating a dividend in 2010. The company usually increases dividends in May. Tractor Supply has managed to increase dividends over the past 5 years at an annualized rate of 14.60%. Future dividend growth will be a little higher than earnings growth over the next decade, assuming a slight expansion in the payout ratio.
The last dividend increase was in January 2021, when Tractor Supply increased its quarterly dividend by 30% to 52 cents/share. This was the second dividend increase in a year. The first one was in August 2020, when the company increased dividends by 14.28% to 40 cents/share.
The company has managed to reduce the number of shares outstanding over the past decade, through consistent share buybacks. The company remains committed to returning cash to our shareholders through our share repurchases and dividends while maintaining a disciplined approach to capital allocation. The number of shares outstanding has declined from a high of 149 million in 2010 to a low below 117 million shares by late 2020.