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Top Dividend Growth Investing Stocks -- Is Tractor Supply the Next Costco? - Motley Fool

Could Tractor Supply be the next Costco for your stock market portfolio?

Today, I am kicking off a new video series covering my top dividend growth investing stocks for 2022 and beyond. Specifically, I'll be covering what I call DGIF stocks. 

DGIF is an acronym I created that stands for "dividend growth investing for FIRED." If you aren't already familiar, FIRED is an acronym for "financial independence retire early with dividends." I explain the five primary criteria for DGIF stocks in the video below.

After the brief description, I cover the first stock in the series, which is Tractor Supply Company (NASDAQ:TSCO). Here are a few reasons to like this stock as a long-term investment:

  • 1,967 strategic locations in 49 states
  • Growing online e-commerce presence
  • Growth without dilution
  • Pet care 
  • Increased buybacks and dividends
  • $13.25 billion 2022 estimated sales
  • Earnings before interest, taxes, depreciation, and amortization (EBITA) also expected to grow an estimated 10% in 2022
  • 22 million loyalty members

Could TSCO be the next Costco (NASDAQ:COST)?

For more information and a breakdown of DGIF and TSCO, please watch the below video and don't forget to subscribe to the channel. 

*Stock prices used in the below video were during the trading day of Dec. 28, 2021. The video was published on Dec. 28, 2021.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka owns Costco Wholesale, Microsoft, and Tractor Supply. The Motley Fool owns and recommends Costco Wholesale and Microsoft. The Motley Fool recommends Tractor Supply. The Motley Fool has a disclosure policy.  Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.