Tractor Supply dividend: payout, coverage and yield
MyStockButler's October 2026 analysis: Tractor Supply pays an annualized dividend of $0.96 per share. Its recent free cash flow did not fully cover dividends and buybacks, so coverage depends on earnings, financial condition and capital needs.
How much does Tractor Supply pay in dividends?
Dividends are frozen at $0.96 per share in the bear case because cash is needed for investment and debt. The base case rises to $1.00, $1.04 and $1.08 through modest quarterly increases. That follows the record of annual dividend growth from $0.42 in 2021 to $0.92 in 2025. The bull case reaches $1.04, $1.12 and $1.20, requiring the cash-flow improvement that Nampa and lower capital spending might provide. The current annualized rate is $0.96, against 2026 EPS guidance of $1.78 to $1.88.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 2.06 | 2.04 | 2.02 | 1.94 | 1.72 |
| Real free cash flow per share | 1.28 | 1.09 | 0.95 | 0.94 | 0.80 |
| − Dividends paid, per share | 0.92 | 0.88 | 0.82 | 0.73 | 0.41 |
| − Share buybacks, per share | 0.68 | 1.04 | 1.08 | 1.25 | 1.38 |
How much would Tractor Supply's dividend pay you?
$10,000 invested in Tractor Supply at its 2.8% dividend yield (our report of October 23, 2026) pays $280.00 in the first year, before tax. If its dividend per share keeps changing 22.4% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $3,202.27, with $11,760.70 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Tractor Supply’s dividend covered by its cash?
Free cash flow is the operating cash left after investment in property and equipment. From 2021 through 2025, shareholder distributions exceeded it every year. The payout ratio fell from 203.4% to 114.6% over the period. In 2025, free cash flow was $740.5 million, while dividends and buybacks consumed $848.9 million.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 740,489 | 636,788 | 580,150 | 583,610 | 510,289 |
| − Dividends paid | 487,669 | 472,492 | 449,620 | 409,603 | 239,006 |
| − Share buybacks | 361,261 | 560,634 | 594,390 | 700,063 | 798,893 |
| = Paid out more than the free cash flow | 108,441 | 396,338 | 463,860 | 526,056 | 527,610 |
| Paid out, % of free cash flow | 114.6% | 162.2% | 180.0% | 190.1% | 203.4% |
What this means. The company paid shareholders more than the cash it generated, so it had to use savings, sell assets, issue shares, or borrow money to cover the difference.
What could change Tractor Supply’s dividend?
The 2.8% dividend yield is not an extra return to add mechanically to free cash flow. Dividends, repurchases and investment all compete for the same cash, and the company says future dividends depend on earnings, financial condition and capital needs. The 1.2x enterprise-value-to-revenue measure therefore says little without knowing how much profit remains after suppliers, freight, wages and rent.
What is Tractor Supply’s dividend yield today?
| Today (Oct 23, 2026) | |
|---|---|
| Share price | 33.7359 |
| P/E, last 12 months (calculated) | 18.1x |
| Free cash flow yield (calculated) | 4.2% |
| Real free cash flow yield (calculated) | 3.9% |
| Dividend yield (calculated) | 2.8% |
What this means. Enterprise value is higher than market value because it adds the company’s debt and subtracts its cash to show what it would cost to buy the whole business.