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Tractor Supply’s reported dividend yield was 3.09% at the October 2, 2026 market close, and its FY2025 dividends equaled about 44.7% of diluted earnings per share. In that fiscal year, the company generated $1.635 billion in operating cash flow, paid $487.7 million in cash dividends, and spent $894.8 million on capital expenditures. Those measures offer different views of income and dividend funding; none alone establishes that a dividend is safe or guarantees future payments.
How Tractor Supply’s yield compares with selected retailers
Dividend yield is annualized dividends per share divided by share price. It changes when either the share price or dividend changes, so the figures below are dated market snapshots, not fixed rates or fiscal-year-end yields.
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| Company | Reported annual dividend per share | Reported yield | Source and basis |
|---|---|---|---|
| Tractor Supply | $0.96 | 3.09% | MarketBeat, October 2, 2026 market close |
| Target | $4.64 | 2.98% | MarketBeat, October 2, 2026 market close |
| Lowe’s | $5.00 | 2.76% | MarketBeat, October 2, 2026 market close |
| Home Depot | Not stated | 1.61% | Yahoo Finance article published October 3, 2026; provider basis may differ |
In MarketBeat’s October 2 comparison, Tractor Supply’s yield was above Target’s and Lowe’s. It was also above Home Depot’s 1.61% figure in a separate Yahoo Finance comparison, but the providers’ calculations and market-data timing are not established as perfectly harmonized. Yahoo Finance reported Lowe’s yield at 2.63%, rather than MarketBeat’s 2.76%, illustrating why provider and date belong beside a yield comparison. These snapshots should not be treated as a synchronized four-company ranking.
Sources: MarketBeat: Tractor Supply dividend, MarketBeat: Target dividend, MarketBeat: Lowe’s dividend, and Yahoo Finance comparison. For the definition and calculation of yield, see Stock Analysis ratio methodology.
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What the payout ratios say—and what they measure
A payout ratio compares dividends with a chosen measure of earnings or cash generation. The denominator, reporting period, and treatment of declared versus paid dividends matter. The calculations below are not all issuer-reported ratios, so they should be read as distinct measures rather than a perfectly standardized league table.
| Company | Dividend and earnings figures | Ratio or calculation | Basis |
|---|---|---|---|
| Tractor Supply | $0.92 per share dividends paid; $2.06 diluted EPS, FY2025 | About 44.7% | Calculation: $0.92 ÷ $2.06; paid dividends per share divided by reported diluted EPS |
| Lowe’s | $4.70 dividends per share, FY2025 | 40% payout ratio in FY2025; 37% in FY2024 | Company-reported ratio; its exact denominator methodology is not specified here |
| Home Depot | $9.20 cash dividends per share; $14.23 diluted EPS, FY2025 | About 64.7% | Calculation: $9.20 ÷ $14.23; cash dividends per share divided by GAAP diluted EPS |
| Target | $4.52 paid per share; $4.54 declared per share, FY2025 | Not calculated | Paid and declared amounts are reported; a matching EPS figure is not stated here |
Tractor Supply’s 44.7% figure is a simple calculation from its FY2025 reported per-share dividends and diluted EPS, not a forward payout ratio. The board declared a quarterly dividend of $0.24 per share in February 2026—$0.96 annualized if paid at that rate for four quarters. Future declarations remain at the board’s discretion.
Lowe’s 40% figure is the company’s reported FY2025 payout ratio, not a ratio recalculated here using a common denominator across peers. Home Depot’s 64.7% is explicitly a calculation using cash dividends per share and GAAP diluted EPS. A different period, adjusted-earnings measure, forward estimate, or cash-flow denominator can produce a different ratio; do not infer that one company’s published figure uses the same method as another’s.
Sources: Tractor Supply Company FY2025 annual report, Lowe’s annual reports, The Home Depot annual reports, and Target annual reports.
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Operating cash flow and cash dividends
Operating cash flow shows cash generated by business operations before capital spending and other investing or financing uses. Comparing it with cash dividends paid provides a second coverage lens, but absolute dollar totals mostly reflect company size. The fiscal years below are each company’s own reporting year, not identical calendar periods.
| Company and fiscal year | Operating cash flow | Cash dividends paid | Operating cash flow ÷ dividends |
|---|---|---|---|
| Tractor Supply, FY2025 ended December 27, 2025 | $1.635 billion | $487.7 million | About 3.4x |
| Home Depot, FY2025 ended February 1, 2026 | $16.3 billion | $9.2 billion | About 1.8x |
| Target, FY2025 ended January 31, 2026 | $6.6 billion | $2.1 billion | About 3.1x |
| Walmart, FY2025 ended January 31, 2025 | $36.4 billion | $6.7 billion | About 5.4x |
The multiples are calculations from the reported operating cash flow and dividend totals shown above, rounded to one decimal place. On this measure, Tractor Supply’s FY2025 operating cash flow was about 3.4 times its cash dividends. This is before capital expenditure and is a description of a past fiscal year, not a forecast.
Walmart also reported $12.7 billion in FY2025 free cash flow, defined as operating cash flow minus payments for property and equipment. Walmart cautions that this measure does not deduct debt service, other contractual obligations, or acquisitions, and that other companies may calculate free cash flow differently. It is therefore not directly interchangeable with an independently calculated post-capex figure for another retailer.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteSources: Tractor Supply Company FY2025 annual report, The Home Depot FY2025 annual report, Target FY2025 annual report, and Walmart FY2025 annual report.
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Why capital expenditures change the coverage picture
Tractor Supply: cash after reported capital expenditures
Tractor Supply reported $894.8 million of FY2025 capital expenditures. Subtracting that amount from $1.635 billion of operating cash flow leaves approximately $740.5 million before other investing, financing, or discretionary uses. This is a simple operating-cash-flow-minus-capex calculation, not a company-reported free-cash-flow measure. Capital investment is relevant because cash available after reinvestment is lower than operating cash flow alone suggests.
Home Depot: operating cash flow is not residual cash
Home Depot reported $3.7 billion of FY2025 capital expenditures, alongside $16.3 billion of operating cash flow and $9.2 billion of cash dividends. The company also discussed debt repayment and acquisition spending. Operating cash flow less capital expenditures therefore does not capture every competing use of cash.
What the cross-company figures cannot establish
- Walmart and Home Depot’s much larger operating cash-flow totals primarily reflect scale; raw dollars do not measure dividend burden on a like-for-like basis.
- Target’s and Lowe’s cash-flow and dividend figures should be interpreted within their own fiscal calendars and reporting definitions.
- Working-capital movements can affect operating cash flow in a particular year, while investment and financing decisions affect how much cash remains available.
- Historical earnings payout and cash coverage describe reported periods; they do not promise that future cash generation or dividends will follow the same pattern.
The annual reports identify different year ends: Tractor Supply’s FY2025 ended December 27, 2025; Home Depot’s ended February 1, 2026; Target’s ended January 31, 2026; and Walmart’s FY2025 ended January 31, 2025. Fiscal labels should be retained rather than silently treated as the same calendar-year period.
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How to read the three measures together
- Yield indicates annualized dividend income relative to a particular share price on a particular date. It is price-sensitive and provider-dependent.
- Earnings payout compares dividends with earnings for a specified period and measure. Tractor Supply’s 44.7% is based on FY2025 paid dividends per share divided by diluted EPS.
- Cash coverage compares cash dividends with operating cash flow, then needs to be considered alongside capital spending and other uses. Tractor Supply’s FY2025 operating cash flow exceeded dividends, but capex reduced the simple remainder substantially.
These are complementary historical indicators, not a standalone safety test or investment recommendation. Dividend continuity depends on future business performance and company decisions.
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