Fastenal Company (NASDAQ:FAST) to Issue $0.24 Quarterly Dividend

Key Points

• Fastenal declared a quarterly dividend of $0.24 per share (annualized $0.96), payable May 26 to shareholders of record April 28, with an implied yield of about 2.1%.
• The company has increased its dividend for 26 consecutive years and currently carries a payout ratio near 80%, though analysts expect upcoming earnings should lower the implied payout to roughly 70.6%.
• Fastenal reported quarterly EPS of $0.30 and revenue of $2.20 billion (up 12.4% YoY); the stock traded around $44.69 (down 1.7%) and carries a MarketBeat consensus rating of "Hold" with a $49.77 target amid mixed analyst opinions.

Fastenal Company (NASDAQ:FAST - Get Free Report) declared a quarterly dividend on Friday, April 10th. Investors of record on Tuesday, April 28th will be paid a dividend of 0.24 per share on Tuesday, May 26th. This represents a c) dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Tuesday, April 28th.

Fastenal has raised its dividend payment by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 26 consecutive years. Fastenal has a dividend payout ratio of 80.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Analysts expect Fastenal to earn $1.36 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 70.6%.

Fastenal Trading Down 1.7%

Shares of NASDAQ FAST opened at $44.69 on Friday. Fastenal has a 12 month low of $38.97 and a 12 month high of $50.63. The company has a market cap of $51.31 billion, a price-to-earnings ratio of 39.20, a P/E/G ratio of 2.90 and a beta of 0.84. The company has a quick ratio of 2.34, a current ratio of 4.39 and a debt-to-equity ratio of 0.03. The business has a fifty day simple moving average of $45.81 and a 200-day simple moving average of $43.59.

Fastenal (NASDAQ:FAST - Get Free Report) last released its quarterly earnings results on Monday, April 13th. The company reported $0.30 earnings per share for the quarter, meeting analysts' consensus estimates of $0.30. The business had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.19 billion. Fastenal had a return on equity of 33.25% and a net margin of 15.39%.Fastenal's revenue for the quarter was up 12.4% on a year-over-year basis. During the same quarter last year, the company posted $0.52 EPS. Sell-side analysts predict that Fastenal will post 1.23 EPS for the current year.

Analysts Set New Price Targets

FAST has been the topic of several research analyst reports. Bank of America lifted their price objective on shares of Fastenal from $48.00 to $55.00 in a research report on Monday, April 13th. Morgan Stanley reissued a "positive" rating and set a $45.00 price target on shares of Fastenal in a research report on Thursday, March 5th. Benchmark restated a "buy" rating on shares of Fastenal in a research report on Thursday, March 5th. JPMorgan Chase & Co. upped their target price on Fastenal from $46.00 to $47.00 and gave the company a "neutral" rating in a report on Thursday, April 9th. Finally, Raymond James Financial set a $48.00 price objective on shares of Fastenal in a research report on Thursday, March 5th. Five investment 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's stock. According to data from MarketBeat, Fastenal has a consensus rating of "Hold" and a consensus target price of $49.77.

Fastenal Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.