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Rush Enterprises Raises Dividend, Targets Sustainable Growth
3 Aug
Summary
- Rush Enterprises to increase dividend by 19 cents per share
- Dividend yield now 1.4% of current stock price
- Company's earnings and cash flow comfortably cover dividend
On August 3rd, 2025, Rush Enterprises, Inc. announced that it will be increasing its dividend from last year's comparable payment. The new dividend of $0.19 per share will be paid on September 12th, 2025, taking the annual payment to 1.4% of the current stock price, which is about average for the industry.
The article notes that Rush Enterprises' dividend was comfortably covered by both cash flow and earnings prior to this announcement, indicating that the company is using most of its earnings to fuel growth. Looking ahead, the company's earnings per share are forecast to expand by 18.2% over the next year. If the dividend continues along recent trends, the payout ratio is expected to be 21%, a range that suggests the dividend's sustainability.
While Rush Enterprises has been paying a consistent dividend for several years, the article suggests that investors would like to see a longer track record before fully relying on it. However, the company's rapid dividend growth, at a compound annual rate of approximately 20% since 2018, and its strong earnings growth of 24% per year over the past five years, are seen as positive indicators for the company's future performance.
