Back to top

Analyst Blog

Recently, the board of directors of Fastenal Company (FAST - Analyst Report) declared a special one- time cash dividend of 50 cents per share on the company's common stock. The dividend is payable on December 21, 2012 to stockholders of record as of December 7, 2012.

Previously, the industrial and construction product supplier had declared its fourth quarterly cash dividend of 21 cents per share on the company's common stock on October 10, 2012. The dividend is payable today, i.e. November 26, 2012 to stockholders of record as of October 29, 2012.

A peer of Home Depot Inc., (HD - Analyst Report), Fastenal had earlier increased its dividend payout for fiscal 2012. The company paid a dividend of 74 cents per share for fiscal 2012 compared with 65 cents for fiscal 2011. The increased dividend can be attributed to the company’s strong liquidity position throughout 2011 and 2012. As of September 30, 2012, Fastenal had cash and cash equivalents of $195.6 million, higher than $185.9 million as of June 30, 2012.

After prolonged decline in daily sales growth in the first half of fiscal 2012, Fastenal benefited from increase in manufacturing customers and non residential construction customers, driven by improvement in the construction market. As a result, daily sales grew 6.8% in the month of October 2012, which is an encouraging sign.

Moreover, Fastenal is accelerating its vending contract signings and installations. We are also encouraged by Fastenal’s numerous growth drivers like government business and metalworking, which are gaining traction and will help to achieve future profitability. Other than that, the company’s strategy of new store openings positions it well for future growth.

We currently have a ‘Neutral’ recommendation on Fastenal over the long term. The stock carries a Zacks #3 Rank that translates into a short-term ‘Hold’ rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%