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Tractor Supply’s reported dividend yield was 3.09% at the October 2, 2026 close, and its fiscal 2025 dividends equaled about 44.7% of diluted earnings per share. The company generated $1.635 billion in operating cash flow that year and paid $487.7 million in dividends—but spent $894.8 million on capital expenditures. Those figures show meaningful historical coverage, not a guarantee of future payments.
How the comparisons are measured
The figures below answer three different questions: yield compares an annualized dividend with a share price; an earnings payout ratio compares dividends per share with an earnings measure; and cash-flow coverage compares cash dividends paid with operating cash flow. They are not interchangeable. A higher yield can result from a falling share price, and a lower earnings payout does not by itself establish that a dividend is safe.
Each company reports on its own fiscal calendar. “FY2025” below means the company’s fiscal-year label, not necessarily the same dates across retailers. Yield figures are market snapshots rather than fiscal-year results.
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Dividend yield: Tractor Supply led the cited snapshot
MarketBeat reported a 3.09% yield for Tractor Supply (NASDAQ: TSCO) at the October 2, 2026 market close, based on an annual dividend of $0.96 per share. On that same close, MarketBeat reported Target (NYSE: TGT) at 2.98% on $4.64 annualized dividends and Lowe’s (NYSE: LOW) at 2.76% on $5.00. A Yahoo Finance article published October 3, 2026 reported Home Depot’s (NYSE: HD) yield at 1.61%; it gave Lowe’s as 2.63% on its own market-data basis.
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Thus, TSCO’s reported yield was above Target’s and Lowe’s in the MarketBeat comparison, and above Home Depot’s separately reported figure. The Home Depot and Lowe’s readings come from a different source and may use different timing or calculation methods, so this is not a perfectly harmonized four-company screen. Yield moves as share prices and dividend assumptions change; it is not a fixed measure of income. MarketBeat’s TSCO, TGT and LOW figures are available at MarketBeat’s Tractor Supply dividend page, Target dividend page and Lowe’s dividend page. The separate comparison is from Yahoo Finance. For the underlying distinction between trailing and forward ratios, see Stock Analysis’s dividend-yield methodology.
Earnings payout: specify the dividend and earnings basis
Using dividends actually paid per share divided by reported diluted EPS gives a simple, transparent calculation for Tractor Supply. Lowe’s publishes its own payout ratio, while the Home Depot figure below is calculated from annual-report values. The figures therefore indicate relative scale, not a fully standardized ranking.
| Retailer | Dividend and earnings basis | Payout measure |
|---|---|---|
| Tractor Supply | FY2025 dividends paid of $0.92 per share ÷ diluted EPS of $2.06 | About 44.7%, calculated from reported figures |
| Lowe’s | Company-reported FY2025 payout ratio; the cited disclosure also reports $4.70 dividends paid per share | 40%, versus 37% in FY2024 |
| Home Depot | FY2025 cash dividends per share of $9.20 ÷ diluted EPS of $14.23 | About 64.7%, calculated on a simple GAAP EPS basis; not an issuer-presented payout ratio |
| Target | FY2025 dividends paid per share of $4.52; $4.54 per share was declared | Not calculated here: the cited figures do not include the EPS denominator |
The annual-report inputs and company disclosures are available in Tractor Supply’s FY2025 annual report, Lowe’s FY2025 annual report, The Home Depot’s FY2025 annual report and Target’s FY2025 annual report. The denominator matters: a ratio based on paid dividends and GAAP diluted EPS can differ from one based on declared dividends, adjusted earnings, a trailing period or a forward estimate.
In February 2026, Tractor Supply’s board declared a quarterly dividend of $0.24 per share. Four quarters at that rate would annualize to $0.96, but future dividends require further board declarations. The annualized amount is not the same as the $0.92 per share actually paid during FY2025.
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Operating cash flow: compare coverage, not company size
Operating cash flow shows cash generated by business operations before capital expenditures and other uses. The table compares reported FY2025 cash dividends with operating cash flow; coverage is a simple division of those figures, rounded to one decimal place. The raw dollar totals also reflect very different business scales: Walmart and Home Depot are substantially larger operations than Tractor Supply.
| Retailer and fiscal period | Operating cash flow | Cash dividends paid | Operating cash flow ÷ dividends |
|---|---|---|---|
| Tractor Supply, FY2025 (year ended December 27, 2025) | $1.635 billion | $487.7 million | About 3.4× |
| Home Depot, FY2025 (year ended February 1, 2026) | $16.3 billion | $9.2 billion | About 1.8× |
| Target, FY2025 (year ended January 31, 2026) | $6.6 billion | $2.1 billion | About 3.1× |
| Walmart, FY2025 (year ended January 31, 2025) | $36.4 billion | $6.7 billion | About 5.4× |
These ratios describe only the reported fiscal years. They do not show all demands on cash or establish what future cash generation will be. Walmart’s FY2025 annual report defines its $12.7 billion free cash flow as operating cash flow minus payments for property and equipment; it cautions that this measure excludes debt service, other contractual obligations and acquisitions, and that other companies may calculate free cash flow differently. Home Depot also discussed debt repayment and acquisition spending, illustrating why operating cash flow alone is not residual cash available for dividends.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Capital spending changes the Tractor Supply cash picture
Tractor Supply reported $894.8 million of FY2025 capital expenditures alongside $1.635 billion of operating cash flow. Subtracting capex leaves about $740.5 million before other investing, financing or discretionary uses—less than the headline operating-cash-flow figure, but still above the $487.7 million in dividends paid that year. This simple subtraction is not a complete free-cash-flow calculation or a forecast: working-capital changes, other cash requirements and future investment needs can alter the amount available.
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Among the other retailers with capex figures in the cited annual reports, Home Depot reported $3.7 billion of FY2025 capital expenditures. Its $16.3 billion of operating cash flow therefore also should not be read as cash remaining after all investment and financing choices. The supplied Target and Walmart figures establish operating cash flow and dividends, but a comparable capex figure for Target is not stated here. Walmart’s company-defined free cash flow is useful context, but its exclusions make it different from a universal measure of dividend capacity.
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What the comparison can—and cannot—tell investors
- Yield is a price-sensitive snapshot. It describes income relative to share price on a stated date, not a promised return.
- Payout ratios depend on definitions. Tractor Supply’s and Home Depot’s figures above are calculations from stated annual-report values; Lowe’s is its company-reported ratio. They should not be treated as identical calculations.
- Cash-flow coverage is a historical lens. Tractor Supply’s FY2025 operating cash flow exceeded dividends, but capex consumed a substantial portion of that cash.
- Cash generation does not guarantee continuity. Business conditions, investment plans, financing needs and board decisions can change; Tractor Supply’s future dividends remain at the board’s discretion.
Fiscal labels also mask different year-end dates: 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 figures cover the year ended January 31, 2025. Those periods are not identical, despite the shared label.
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