CASY - Casey's General Stores: A Dividend Grower Worth Owning For Long-Term Investors

2024-02-23 06:30:00 ET

Summary

• Casey's General Stores is a lesser-known essential business that pays a growing dividend, making it an attractive investment for dividend investors.
• The company operates mainly in smaller towns in the Midwest region of the United States, which allows for cheaper operations and resonates with locals, driving customer loyalty.
• Casey's has a strong dividend track record, with over 30 years without a reduction and the potential for future growth. The company also has low leverage and financial flexibility for further growth.
• CASY's dividend is well-covered by a very low FCF payout ratio of roughly 11%, giving them ample room to continue growing the dividend for the foreseeable future.
• Although the company has enjoyed some strong growth year-over-year, an uptick in job losses or the economy falling into a recession would likely impact their financials going forward.

Introduction

As a dividend investor nothing excites me more than a company that's considered an essential business that pays a growing dividend. Especially, when it's a company that's not super popular amongst investors. At least not here on Seeking Alpha. Case in point: Casey's General Stores (CASY)....

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