Fastenal Declares Quarterly Cash Dividend
Fastenal Company, a leading distributor of industrial and construction supplies across 25 countries, has announced the declaration of a quarterly cash dividend of $0.44 per share. This dividend will be paid on May 23, 2025, to shareholders of record as of the close of business on April 25, 2025. The company, often referred to collectively as “Fastenal,” or simply as “we,” “our,” or “us,” continues its longstanding commitment to returning value to shareholders through consistent and disciplined dividend practices.
Dividend History and Policy
Fastenal’s dividend journey began in 1991 with the issuance of annual dividends. This commitment to rewarding shareholders deepened in 2003 when the company transitioned to semi-annual dividend payments. In 2011, Fastenal further enhanced shareholder value by moving to a quarterly dividend model, reflecting the company’s maturing financial profile and steady earnings growth.
Beyond regular dividends, Fastenal has also rewarded shareholders with special one-time dividends, demonstrating the company’s willingness to share excess capital when prudent. These special dividends were issued in December 2008, 2012, 2020, and most recently in December 2023.
While the company intends to maintain quarterly dividend payments as part of its capital return strategy, all future dividend declarations are subject to the discretion of Fastenal’s board of directors. Decisions will be based on the financial health of the business, current and projected operational results, and broader market or economic conditions at the time.
2025 Dividend Activity
So far in 2025, Fastenal has declared two quarterly dividends:
- Q1 2025: $0.43 per share
- Q2 2025: $0.44 per share
These payments represent an upward trend, signaling Fastenal’s confidence in its financial performance and underlying business strength. The increase from $0.43 to $0.44 marks a continuation of the company’s pattern of gradually increasing dividend payouts.
Based on 573.6 million shares outstanding as of March 31, 2025, Fastenal’s estimated dividend distribution for the first two quarters of 2025 totals approximately $499 million. Notably, this includes only the first two quarterly payments and does not reflect the possibility of additional dividends or a special payout later in the year.
Recent Dividend Performance (2023–2024)
Over the past two years, Fastenal has demonstrated a consistent and growing dividend performance:
- 2024: Fastenal paid four quarterly dividends of $0.39 each, totaling $1.56 per share. No special dividend was issued in 2024.
- 2023: Shareholders received four regular quarterly dividends of $0.35 each, totaling $1.40 per share. Additionally, a $0.38 special dividend was paid in December, bringing the total 2023 dividend payout to $1.78 per share.
This consistent dividend growth underscores Fastenal’s robust financial performance and its strategic prioritization of shareholder returns.
A Decade of Shareholder Returns
Over the last ten years, Fastenal has paid approximately $6.22 billion in total dividends, equating to $10.07 per share in regular dividends and $0.78 in special dividends, for a combined total of $10.85 per share.
Here’s a breakdown of dividend and share repurchase activity in recent years:
- 2022: $1.24 in dividends per share, $237.8 million spent repurchasing 5 million shares at an average price of $47.58
- 2021: $1.12 in dividends, no repurchases
- 2020: $1.00 in regular dividends plus a $0.40 special dividend; 1.6 million shares repurchased at $32.54 each
- 2019–2016: Regular dividends ranged from $0.60 to $0.87 per share; selective share repurchase activity occurred during this period
This long-term financial discipline reflects a deliberate balance between capital reinvestment, shareholder payouts, and prudent share repurchases based on market conditions.
Share Repurchase Activity
In the first quarter of 2025, Fastenal did not repurchase any of its common stock. However, the company retains authorization to buy back up to 6.2 million additional shares under a share repurchase plan initiated on July 12, 2022. This authorization has no expiration date, allowing management flexibility in timing any future buybacks based on valuation and capital allocation considerations.
While recent years have shown limited share repurchase activity, Fastenal’s management has demonstrated a willingness in the past to utilize repurchases strategically, particularly when shares trade at attractive valuations or to offset dilution.
Financial Resilience and Consistent Strategy
Fastenal’s dividend announcements are underpinned by the company’s stable operating performance, strong free cash flow generation, and disciplined financial management. These attributes enable Fastenal to not only fund growth initiatives and reinvest in its operations but also return significant capital to shareholders.
The company’s ability to maintain and increase dividend payments—even during periods of economic uncertainty—highlights its resilience and commitment to long-term value creation.
Business Overview: Where Industry Meets Innovation™
Founded in 1967 and headquartered in Winona, Minnesota, Fastenal has evolved into a global industrial supply powerhouse. The company operates over 3,500 in-market locations across 25 countries, serving a diverse customer base that includes manufacturers, construction firms, warehousing operators, government agencies, and wholesale buyers.
Fastenal’s business model is anchored in a “high-touch, high-tech” approach. By combining local expertise and inventory with advanced technology, world-class sourcing, and reliable logistics capabilities, Fastenal helps its customers streamline their supply chains and lower their total cost of ownership.
Its product offerings span fasteners, safety equipment, cutting tools, abrasives, electrical components, and more—positioning the company as a one-stop solution for mission-critical industrial and construction supplies.
