The stock of Casey’s General Stores (CASY) soared 12% and hit a new all-time high after the convenience store operator raised its quarterly dividend.
Casey’s management team said they are increasing the quarterly dividend by 14% to $0.57 U.S. per share.
That will take the dividend yield on Casey’s stock up close to 1% and give shareholders an annual distribution of $2.28 U.S. per share.
The dividend hike was announced alongside strong first-quarter financial results and robust guidance.
Casey’s reported earnings per share (EPS) of $2.63 U.S., topping the $1.95 U.S. consensus estimate of analysts.
Revenue during the January through March quarter totaled $3.99 billion U.S., which beat the $3.93 billion U.S. forecast on Wall Street. Sales were up 11% from a year earlier.
Casey’s, which sells pizza and gasoline at its convenience store locations in the U.S. Midwest, credited its growing food business with bringing more foot traffic into its 2,500 outlets.
The company said its same-store sales, excluding gasoline, rose 1.7% in the quarter.
Looking ahead, Casey’s said that it expects full-year earnings to grow between 10% and 12%, and comparable sales to climb between 2% and 5%.
The company also plans to open at least 80 new stores in 2025.
Casey’s stock is up 24% this year and trading at $490.20 U.S. per share.
