1 Top Dividend Stock Is on Sale

Tractor Supply is a reliable dividend payer with a promising future, and recent weakness in the stock could be a gift to long-term investors.

Apr 17, 2025 - 09:37

As macroeconomic uncertainty persists, many investors may be looking for resilient businesses likely to hold up well even if a recession rears its ugly head. Dividend stocks with a long track record of dividend growth are usually good options when investors are seeking out companies like this. But investors looking for more resilience in their portfolio shouldn't pick up just any dividend stock. Instead, they should be picky.

Specifically, investors looking for a good dividend stock for uncertain times should search for a company with a consistent track record of dividend payments, a low payout ratio, and an underlying business unlikely to take a major hit during a recession. Rural lifestyle retailer Tractor Supply (NASDAQ: TSCO) possesses these characteristics.

Let's take a closer look.

Tractor Supply's results for its fourth quarter of 2024 highlight the company's resilience amid a challenging retail environment. Net sales for the quarter increased 3.1% year over year to about $3.8 billion, driven by new store openings and a 0.6% rise in comparable store sales. However, net income decreased 4.6% to $236.4 million, and diluted earnings per share (EPS) declined 3.3% to $0.44, slightly missing analyst expectations. But if you zoom out to the company's full-year 2024 results, you'll see a company that still grew both sales and earnings moderately -- quite an achievement considering the company experienced extraordinary growth during the COVID-19 pandemic and hasn't given those gains back. For the full fiscal year 2024, net sales rose 2.2% to approximately $14.9 billion, with comparable store sales up 0.2%. Diluted EPS for the year increased 1.1% to $2.04.