Casey's Raises Dividend 14.0% to $0.65, Extends 27-Year Streak

Casey’s General Stores raised its quarterly dividend 14.0% to $0.65 a share from $0.57. The first payment at the new rate traded ex-dividend on July 31, 2026; the next ex-dividend date is October 30, 2026.

Why the dividend changed

Casey’s did not attribute the increase to a single operating measure. The board approved it as the convenience-store operator completed a record fiscal year, increased share repurchases and prepared to fund another phase of store expansion. The change was an ordinary quarterly increase, not the result of a split, merger, spin-off or special distribution.

In its fiscal 2026 results, Casey’s reported that annual net income rose 30.7% to $714.4 million and EBITDA increased 23.6% to nearly $1.5 billion. Prepared foods and nonalcoholic beverages supported inside sales, while higher fuel margins lifted fuel gross profit. The board also expanded the share-repurchase authorization to $1 billion, placing the dividend increase within a broader program of returning capital while retaining funds for growth.

Operating momentum continued after the declaration. Casey’s fiscal first-quarter report showed diluted earnings per share rose 27.7% and net income increased 27.1% from a year earlier. Management attributed the improvement to higher inside and fuel gross profit, partly offset by higher operating expenses. The company left its fiscal 2027 outlook unchanged.

Capital needs are also rising. Casey’s new three-year plan emphasizes food and beverage growth, expansion through acquisitions and new construction, and technology-led operating efficiency. Its annual filing says future spending on operations, improvements and store growth is expected to be funded through operating cash, credit facilities and, if needed, long-term debt or other securities. The low earnings payout leaves room for those competing uses of capital.

Dividend track record

The increase extends Casey’s company-reported record to 27 consecutive years of annual dividend growth. The recent payment history shows a regular progression: the quarterly rate was $0.50 on the May 1, 2025, ex-dividend date, increased to $0.57 beginning August 1, 2025, and remained there through May 1, 2026, before reaching $0.65 on July 31, 2026.

Annual distributions have also accelerated. The total rose from $1.28 per share in 2020 to $1.37 in 2021 and $1.46 in 2022. It then climbed to $1.62 in 2023, $1.86 in 2024 and $2.14 in 2025. The annual increase advanced from 7.0% in 2021 and 6.6% in 2022 to 11.0% in 2023, 14.8% in 2024 and 15.0% in 2025. The five-year annualized dividend growth rate is 10.8%.

The pattern shows Casey’s has favored one material annual rate adjustment followed by several equal quarterly payments. The latest 14.0% increase continues that approach and moves the indicated annual dividend to $2.60 per share.

Is the dividend covered?

The dividend consumes 11% of earnings. That is a modest claim on profit and leaves most earnings available for stores, acquisitions, debt service and repurchases. Coverage therefore does not depend on Casey’s distributing most of its current profit.

SmarterDividends assigns the dividend a safety score of 97 and an A grade, meaning very safe (score 80-100). The grade reflects the low earnings payout and established growth record. It describes present coverage strength, not a guarantee of future payments.

Yield and valuation

The forward yield is 0.44%, well below the Consumer Cyclical sector median forward yield of 2.66%. Casey’s dividend offers a comparatively small current-income component despite its recent growth. At the stated share price of $600.73, the company has a market value of $22.2 billion.

SmarterDividends estimates fair value at $494.23 and classifies the shares as overvalued. The estimate is 17% below the stated share price. The combination of a 0.44% yield and that valuation verdict separates the dividend’s strong coverage from the amount of current income available at the prevailing price.

What to watch

The next scheduled ex-dividend date is October 30, 2026, when the quarterly rate remains $0.65. Investors must own shares before that date to qualify under standard ex-dividend mechanics.

Operating execution remains the central coverage issue. Casey’s fiscal 2027 guidance calls for inside same-store sales to rise 2% to 5%, EBITDA to increase 8% to 10% and at least 120 stores to open through acquisitions and new construction. Planned property and equipment spending is approximately $800 million. Future results will show how much cash the expansion program, acquisition integration and capital returns require alongside the $2.60 annual dividend.