Is This Dividend Growth Retailer Stock a Buy?
It's official. After a more-than-year-and-a-half review by the Federal Trade Commission (FTC), Tractor Supply (NASDAQ: TSCO) has closed its acquisition of fellow rural retailer Orscheln Farm and Home.
As per an agreement with the FTC, Tractor Supply will retain 81 Orscheln locations and sell the other 85 (along with Orscheln's headquarters) to two other small farm and home retail chains in the Midwest. After these sales, the net purchase price will be $238 million. As of the end of June, Tractor Supply had $531 million in cash and equivalents, so it will be able to use cash off its balance sheet to complete the deal.
This is a milestone for Tractor Supply as it steadily expands its footprint across the country. And while the U.S. housing market is in total disarray at the moment, the pandemic has accelerated an American migration to more suburban and rural areas. Tractor Supply is thus a growth company. It also pays a dividend, and that payout could steadily rise in the years to come.
Source Fool.com
