Tractor Supply & Kroger Boost Dividends Despite Shutdown
Tractor Supply Co (TSCO) and Kroger (KR) have demonstrated resilience by increasing dividends despite a USA government shutdown. Both retailers have maintained their impressive streaks of dividend hikes, with Tractor Supply marking 16 consecutive years and Kroger reaching 19.
Tractor Supply, headquartered in Brentwood, Tennessee, boosted its dividend by 4.5% in February. CEO Hal Lawton expressed confidence in the company's outlook for the second half of 2025. Despite the federal government shutdown starting on Oct. 1, which led to furloughs and curbed regulatory activity, Americans continued to purchase essential items such as groceries, pet feed, basic hardware, and pharmacy items. This resilience was reflected in Tractor Supply's latest quarterly update, showing net sales rising 4.5% and comparable-store sales up 1.5%.
Kroger, too, has shown strength. In June, it approved a 9% increase to its quarterly dividend, extending its streak to 19 years. The company's second quarter of fiscal 2025 saw robust sales growth driven by pharmacy, e-commerce, and fresh categories. Kroger also raised its full-year fiscal 2025 guidance for same-store sales growth and adjusted earnings per share. Both retailers have proven their ability to provide dividends even during challenging times.
Tractor Supply and Kroger have shown remarkable resilience, maintaining their dividend increase streaks even during a USA government shutdown. With strong sales and positive outlooks, these retailers continue to provide value to shareholders. Tractor Supply plans to repurchase between $325 million and $375 million worth of its stock in 2025, further demonstrating its confidence in the company's future.
