Dividend Aristocrats In Focus: Fastenal Co.

Up to date on February twenty fourth, 2026 by Felix Martinez

The Dividend Aristocrats are S&P 500 corporations which have raised their dividends for a minimum of 25 consecutive years. The listing modifications every year as new corporations are added (and sometimes eliminated when streaks finish).

Fastenal Co. (FAST) was the one addition to the Dividend Aristocrats listing in 2024.

You may see the total listing of all 69 Dividend Aristocrats right here.

We created a complete listing of all Dividend Aristocrats, together with key monetary metrics, together with price-to-earnings ratios and dividend yields. You may obtain your copy of the Dividend Aristocrats listing by clicking on the hyperlink beneath:

Disclaimer: Positive Dividend will not be affiliated with S&P World in any approach. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet is predicated on Positive Dividend’s personal overview, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s primarily based. Not one of the data on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official data.

Fastenal elevated its dividend for the twenty seventh consecutive 12 months final 12 months. On January sixteenth, 2026, Fastenal raised its quarterly dividend by 9.1%, from $0.22 to $0.24.

This text will talk about the newest addition to the Dividend Aristocrats listing in higher element.

Enterprise Overview

Fastenal started in 1967 when Bob Kierlin and 4 mates pooled collectively $30,000 to open the primary retailer. The unique intent was to dispense nuts and bolts through merchandising machine, however that concept received off the bottom after 20 years.

The corporate went public in 1987 and immediately gives fasteners, instruments, and provides to its clients through 1,592 public branches, 1,872 energetic Onsite areas, and over 115,000 managed stock gadgets.

Fastenal has a market capitalization of $51.7 billion.

Fastenal reported (1/20/26) fourth-quarter and full-year outcomes for fiscal 2024 in January. The corporate reported strong 2025 outcomes, with internet gross sales growing 8.7% to $8.20 billion, internet revenue rising 9.4% to $1.26 billion, and diluted EPS rising to $1.09.

Fourth-quarter gross sales rose 11.1% 12 months over 12 months to $2.03 billion, supported by increased unit volumes, pricing advantages of roughly 310–340 foundation factors, and continued growth in massive contract clients. Working revenue elevated 9.6% yearly, with working margins bettering barely to twenty.2%, reflecting disciplined expense management regardless of inflationary value pressures.

Development was primarily pushed by manufacturing clients, which represented 75.4% of quarterly gross sales and grew 12.8% 12 months over 12 months, alongside energy in transportation and data-center demand. Fastenal’s technology-enabled distribution mannequin continued gaining traction, with FMI (FASTBin, FASTVend, and FASTStock) gross sales rising 14.6% to $3.71 billion, accounting for 44.7% of complete income, whereas digital footprint gross sales reached 61.4% of complete gross sales.

Larger spending from massive buyer websites and increasing managed stock applications supported constant share features whilst broader industrial manufacturing remained sluggish.

Wanting forward, administration expects continued development pushed by buyer contract wins, digital stock growth, and elevated capital funding of $310–$330 million in 2026, geared toward logistics capability, IT upgrades, and distribution effectivity enhancements.

Whereas near-term demand stays tied to industrial exercise cycles, Fastenal’s growing penetration of enormous enterprise accounts and its automation-driven service mannequin place the corporate for regular income development and margin stability throughout various financial situations.

Supply: Investor Presentation

Development Prospects

Fastenal has grown its earnings per share at a median annual price of 10.3% over the past decade and eight.1% over the past 5 years. This has been pushed by a wide range of components, together with gross sales greater than doubling, improved margins, and tax reform.

The COVID-19 pandemic impacted many companies, however Fastenal proved resilient in 2020. The normal enterprise confronted challenges, however the Security phase greater than offset misplaced gross sales. We anticipate 7% earnings-per-share development over the following 5 years.

Fastenal is within the midst of a change from conventional public branches to Onsite areas and managed stock (principally merchandising gadgets), main the enterprise’s development story.

We imagine this can be a prudent transfer that can assist set up stickier buyer relationships. That is very true since solely a small fraction of the corporate’s enterprise is from walk-in clients, whereas the bulk is completed business-to-business.

Supply: Investor Presentation

Aggressive Benefits & Recession Efficiency

Fastenal has a first-mover aggressive benefit in its industrial merchandising and Onsite areas, creating a really sticky and well-attuned buyer relationship with excessive switching prices.

Furthermore, its scale allows the corporate to proceed rising, adapt to buyer preferences, and reliably ship the products clients want.

You may see Fastenal’s earnings-per-share throughout the Nice Recession beneath:

• 2007 earnings-per-share: $0.19
• 2008 earnings-per-share: $0.24
• 2009 earnings-per-share: $0.16
• 2010 earnings-per-share: $0.23

Earnings declined throughout the worst of the recession, however the firm remained worthwhile. This saved the dividend rising throughout that interval.

Whereas we observe cyclical potentialities within the building trade, the corporate has to date confirmed itself well-prepared to climate monetary storms.

We observe that the dividend payout ratio rose to 80% in 2026, however we imagine that is affordable given the corporate’s debt-free steadiness sheet.

Valuation & Anticipated Returns

Based mostly on the anticipated adjusted EPS of $1.25 For fiscal 2025, Fastenal inventory is at the moment buying and selling at 36.4 occasions that determine. The earnings a number of is above our honest worth estimate at 24x.

This means a 7% annual headwind ought to it attain 24 occasions earnings over the following 5 years. The anticipated earnings development will offset the decline, which we estimate at 7% per 12 months.

Fastenal inventory additionally has a present dividend yield of two.1%. Due to this fact, we challenge complete annual returns of two.1% over the following 5 years.

Last Ideas

Fastenal has confirmed to be a fantastic firm with constant earnings and dividend development. Furthermore, it’s executing strikes to additional cement its place as a go-to provider.

Nevertheless, the inventory has greater than doubled over the previous 5 years and is now overvalued. We anticipate the inventory to generate a 2.1% common annual complete return over the following 5 years. The inventory maintains its maintain ranking.

Moreover, the next Positive Dividend databases comprise essentially the most dependable dividend growers in our funding universe:

In case you’re on the lookout for shares with distinctive dividend traits, contemplate the next Positive Dividend databases:

The key home inventory market indices are one other strong useful resource for locating funding concepts. Positive Dividend compiles the next inventory market databases and updates them month-to-month: