Casey’s General Stores Stock (CASY) Jumps 12% on News of Dividend Increase

The stock of Casey’s General Stores (CASY) is up 12% and at a new all-time high on June 10 after the convenience store operator reported strong financial results and raised its quarterly dividend.

Specifically, Casey’s management team said they are increasing the quarterly dividend by 14% to $0.57 per share. That will take the dividend yield on CASY stock up close to 1% and give shareholders an annual distribution of $2.28 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, topping the $1.95 consensus estimate of analysts. Revenue during the quarter totaled $3.99 billion, which beat the $3.93 billion forecast on Wall Street. Sales were up 11% from a year earlier.

Food Offerings

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 sales, 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. CASY stock is up 24% this year.

Is CASY Stock a Buy?

The stock of Casey’s General Stores has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on six Buy, four Hold, and one Sell recommendations issued in the past three months. The average CASY price target of $455.10 implies 7.37% downside risk from current levels. These ratings are likely to change after the company’s financial results.

Read more analyst ratings on CASY stock