Fastenal raises quarterly dividend to $0.44 per share

WINONA, Minn. - Fastenal Company (NASDAQ:FAST), a major supplier of industrial and construction products with a market capitalization of $43.5 billion, has announced that its board of directors declared a second-quarter cash dividend of $0.44 per share. This dividend is payable on May 23, 2025, to shareholders of record as of April 25, 2025. The company's strong financial health, as indicated by InvestingPro data, shows a robust current ratio of 4.67, suggesting ample liquidity to support dividend payments.

The company, which has been distributing dividends since 1991, has a history of sharing profits with its shareholders, including special one-time dividends and a transition to quarterly dividends since 2011. According to InvestingPro analysis, Fastenal has maintained dividend payments for 33 consecutive years, with impressive dividend growth of 22.86% in the last twelve months. The recent announcement reflects a slight increase from the first quarter dividend of $0.43 per share for 2025. In 2024, Fastenal maintained a steady dividend of $0.39 per share each quarter, totaling $1.56 for the year.

Fastenal did not repurchase any of its common stock in the first quarter of 2025 but retains the authority to buy back up to 6,200,000 additional shares under a July 12, 2022, authorization, which does not have an expiration date. The company's share and per share information have been adjusted to reflect a two-for-one stock split in 2019.

Operating over 3,500 in-market locations across 25 countries, Fastenal provides a variety of products, including fasteners and safety products, to diverse industries. The company emphasizes its "high-touch, high-tech" approach, aiming to help customers mitigate costs and scalability constraints in their supply chains. This strategy has proven successful, with InvestingPro data showing the company maintains a healthy gross profit margin of 45.08% and strong return on equity of 33%. Four analysts have recently revised their earnings expectations upward for the upcoming period.

While Fastenal's board of directors currently intends to continue paying quarterly dividends, future dividends are subject to the company's financial performance and other factors deemed relevant by the board. The forward-looking statements in the press release, including expectations about future dividends, are based on current conditions but may change due to various risks and uncertainties.

This dividend announcement is based on a press release statement from Fastenal Company.

In other recent news, Fastenal Company reported its fourth-quarter results, which did not meet analyst expectations. The company posted earnings per share of $0.46, falling short of the anticipated $0.48, and revenue reached $1.82 billion, missing the expected $1.84 billion. Despite the earnings miss, the company experienced a 3.7% year-over-year increase in net sales, although daily sales growth slowed to 2.1%. Wolfe Research recently upgraded Fastenal's stock rating from Underperform to Peerperform, citing the company's strong financials and market positioning. Stifel adjusted its price target for Fastenal to $82, maintaining a Hold rating, following the earnings shortfall. KeyBanc maintained a Sector Weight rating on Fastenal, noting potential improvements in financial outcomes due to macroeconomic conditions. Additionally, Fastenal announced changes to its Board of Directors, with Nicholas J. Lundquist stepping down and Brady D. Ericson joining as a new independent director. These developments reflect Fastenal's ongoing efforts to navigate the current industrial landscape and adapt to evolving market conditions.

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