Covered, twenty-seven straight raises — and yielding a third of a percent. Casey's paid $83 million of dividends against $722 million of company-reported free cash flow in fiscal 2026, 11.5%, a pass, and management reports leverage of 1.5x debt to EBITDA, a pass. The board raised the quarterly dividend 14% to $0.65 in June 2026, the twenty-seventh straight year of increases. Every check passes except the yield: 0.35% trailing is far under 1%, so the card is graded warn as a growth holding under §1, not income.
Key risk: The dividend is a rounding error against store growth spending — holders are paid in share price, and the raise record depends on fuel and inside-store margins holding.
Changes if: The trailing yield rises above 1%, or the dividend is cut.
- ✓Cash-flow cover 11.5% of company-reported FY2026 free cash flow, pass (<60%).
- ✓Leverage 1.5x on the company-reported basis, pass (<3x).
- ✓Growth record Twenty-seven straight years of increases; no cut in 10 years.
- !Trap screen Yield 0.35%, under 1% — warn as a growth holding; no cut, payout under 100%.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.