WINONA, Minn. - Fastenal Company (NASDAQ:FAST), a major distributor of industrial and construction supplies, has announced a quarterly cash dividend of $0.43 per share, payable on February 28, 2025, to shareholders of record as of January 31, 2025. According to InvestingPro data, the company has maintained dividend payments for 32 consecutive years, with a current dividend yield of 2.1%. This marks a continuation of the company's practice of distributing dividends, which it has done annually since 1991, semi-annually since 2003, and quarterly since 2011.
The company's history of dividend payments includes special one-time dividends paid in December of 2008, 2012, 2020, and 2023. While the board of directors intends to maintain the practice of paying quarterly dividends, future payments are subject to Fastenal's financial condition, operational results, and other relevant factors considered by the board at that time.
In the past three years, Fastenal has shown a consistent increase in its regular dividend payouts, from $1.40 in total for 2023 to $1.56 in 2024. The company's dividend growth rate stands at 11.43% over the last twelve months, according to InvestingPro, which indicates strong dividend sustainability backed by the company's GREAT financial health score. No special dividend was declared in 2024, unlike the previous year when a special dividend of $0.38 per share was distributed, bringing the total for 2023 to $1.78.
Over the last decade, Fastenal has returned nearly $6 billion to shareholders through dividends, with an average per share price of $30.39 for the common stock purchased. Currently trading at $74.77, the stock appears overvalued according to InvestingPro's Fair Value analysis, with a P/E ratio of 37x and market capitalization of $42.84 billion. The company did not repurchase any common stock in the fourth quarter of 2024 but retains the authority to buy back up to an additional 6,200,000 shares under an authorization that does not have an expiration date.
Fastenal's operations span more than 3,600 in-market locations across 25 countries, serving a diverse customer base that includes manufacturing, construction, and state and local government entities. The company's offerings range from fasteners to safety and metal cutting products, supported by local inventory, industry specialists, and a variety of managed inventory and digital solutions. With revenue of $7.48 billion in the last twelve months and a strong return on equity of 33%, Fastenal demonstrates robust operational efficiency. Discover more detailed insights about Fastenal's performance in the comprehensive Pro Research Report, available exclusively on InvestingPro.
This dividend announcement is based on a press release statement and is a part of Fastenal's ongoing commitment to shareholder returns. The company's forward-looking statements, including expectations of future dividend payments, are subject to various risks and uncertainties that could affect its financial condition and results of operations, as detailed in its filings with the Securities and Exchange Commission.
In other recent news, Fastenal Company has experienced several significant developments. The company's Q3 2024 earnings report revealed a 3.5% increase in net sales and a 1% rise in earnings per share, hitting $0.52. Notably, Fastenal's CFO, Holden Lewis (JO:LEWJ), announced his resignation effective April 2025, a decision not due to any disagreements with the company's operations, policies, or practices.
Stifel analysts maintained a Hold rating on Fastenal shares, anticipating a macroeconomic recovery that could potentially benefit the company's growth in the fiscal year 2025. Loop Capital also raised its price target for Fastenal from $72.00 to $76.00, maintaining a Hold rating on the stock.
Fastenal has also seen a series of significant internal developments. The company promoted Donnalee K. Papenfuss to Executive Vice President of Strategy and Communications, leading strategic initiatives focused on technology, sales, and environmental, social, and governance practices. These are recent developments within Fastenal, a company experiencing steady growth and maintaining a strong financial position.
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