Natural Grocers Is Looking Good...

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Natural Grocers by Vitamin Cottage, Inc. ($NGVC). What a name!

I love clunky and cumbersome business names. And when I first heard of this company, I knew I had to check them out. At the time, Natural Grocers was trading at an extremely high valuation, with a stock price somewhere around $50 per share.

That was back in May of this year.

Since then, the company has sold-off considerably and come back down to a more reasonable valuation.

Natural Grocers is down -39.86% from its 52-week high. And the company is now trading at a price to earnings ratio of 19.57 while offering a 1.34% starting dividend yield. On top of this, Natural Grocers has a strong track record for dividend growth. And, the firm is known to pay special dividends.

With this in mind, let’s take a look at what Natural Grocers by Vitamin Cottage, Inc. does and why it could be a great long-term investment.

Natural Grocers by Vitamin Cottage, Inc. operates the Natural Grocers health food chain, these are health food stores that sell products like whole milk yogurt, biodynamic pasta sauce, castile soap, gourmet vegetables, and vitamins.

The company runs 169 stores in 21 states. And, Natural Grocers has been in business since 1955.

This is a niche food retailer that differentiates itself from other supermarket chains due to the company’s focus on health related products. Natural Grocers prides itself on “Selling only natural & organic products meeting our strict quality standards.” And this gives the company a moat compared to other supermarket chains that aren’t focused on health and wellness.

As an investment, Natural Grocers by Vitamin Cottage, Inc. had pretty weak stock performance from 2014 to 2024.

From October 2014 to April 2024, this stock basically traded flat — dividends excluded.

But since early 2024, Natural Grocers stock has exploded. Shares are up 120% from April 2024 to September 2025. And while the stock has more than doubled, the company still trades at an attractive valuation.

Natural Grocers is currently valued at a price to earnings ratio of 19.57.

The stock pays a 1.34% starting dividend yield. And, Natural Grocers has extremely strong dividend growth with a 5-year compound annual dividend growth rate of 11.38%.

Plus, the company occasionally pays special dividends.

In November 2020, Natural Grocers paid a $2.00/share special dividend. And in November 2023, the company issued a $1.00 per share special dividend.

Additionally, last November, Natural Grocers raised its dividend by 20%.

This company does not raise its dividend every year. But, the special payments and large hikes, when they happen, still provide Natural Grocers shareholders with inflation-beating dividend growth.

This business isn’t raising dividends every year like supermarket behemoth The Kroger Co ($KR). But, Natural Grocers by Vitamin Cottage, Inc. is an interesting niche retailer. And, the firm pays both fixed quarterly dividends and the occasional special payout. This, coupled with the company’s recent sell-off back to a reasonable valuation, makes Natural Grocers by Vitamin Cottage, Inc. an attractive stock I’d be interested in buying.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.