KENOSHA, Wis. - Snap-on Incorporated (NYSE: SNA), a global provider of professional tools and solutions, has announced an increase in its quarterly common stock dividend from $1.86 to $2.14 per share, marking a rise of 15.1%. The updated dividend is scheduled for distribution on December 10, 2024, to shareholders on record as of November 21, 2024. This adjustment represents the company's 15th consecutive year of dividend growth.
Nick Pinchuk, Snap-on's chairman and chief executive officer, emphasized the dividend's role in the company's commitment to generating shareholder value, citing the resilience and strength of the enterprise. He noted that the dividend hike reflects the company's sound financial position, effective cash generation, and progress in operations, which allows for continued investment in strategic growth and improvement.
Snap-on has a history of consistent quarterly dividends since 1939. The company, established in 1920, is a well-known innovator, manufacturer, and marketer in the tool and equipment industry, catering to professional users in various sectors, including vehicle repair, aerospace, and manufacturing. With a sales network comprising franchisee vans and direct and distributor channels, Snap-on also offers financing programs to support sales and its franchise business. The company, an S&P 500 constituent, reported sales of $4.7 billion in 2023.
While the dividend increase is a forward-looking statement, it is based on current expectations and, as with any such projections, is subject to risks and uncertainties that could cause actual results to differ. Snap-on has made it clear that these forward-looking statements are developed by management in good faith and that actual outcomes may vary due to numerous factors, as detailed in the company's filings with the Securities and Exchange Commission.
This announcement is based on a press release statement from Snap-on Incorporated.
In other recent news, Snap-On Incorporated (NYSE:SNA)'s earnings per share (EPS) increased to $4.70 in the third quarter of 2024, surpassing the estimated $4.54 and consensus of $4.59, despite a slight 1.7% decrease in organic sales. The company's gross margin also expanded by 130 basis points year-over-year to 51.2%. These recent developments are a result of Snap-On's strategic moves, including the acquisition of Mountz, a manufacturer of industrial torque wrenches and measurement equipment, and a focus on offering faster payback and smaller ticket items.
Tigress Financial Partners and Jefferies have raised their price targets for Snap-On to $385 and $290 respectively, while maintaining their positive ratings. This is due to the company's recovery momentum, particularly within its Tool Group, and the success of its strategic acquisition of Mountz. Analysts from CL King and Oppenheimer have also maintained their neutral ratings on Snap-On, recognizing the company's strong performance despite market challenges.
Despite the overall positive outlook, Snap-On's Tools Group sales saw a 3.1% organic decrease to $500.5 million, and the Repair Systems & Information (RS&I) segment reported a 1.9% organic sales decline to $422.7 million. Nonetheless, consolidated operating earnings increased to $324.1 million, indicating a strong performance in the specialty torque business. Snap-On anticipates capital expenditures of approximately $100 million for the full year and expects its effective income tax rate to remain between 22% to 23%.
InvestingPro Insights
Snap-on's recent dividend increase aligns with its strong financial performance and commitment to shareholder value. According to InvestingPro data, the company's dividend yield stands at 2.11%, with a remarkable dividend growth of 14.81% over the last twelve months. This is consistent with the company's announcement of a 15.1% increase in its quarterly dividend.
InvestingPro Tips highlight that Snap-on has raised its dividend for 14 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This long-standing track record of dividend growth underscores the company's financial stability and commitment to returning value to shareholders.
The company's strong financial position is further evidenced by its impressive gross profit margins and the fact that it holds more cash than debt on its balance sheet. These factors contribute to Snap-on's ability to sustain and grow its dividend payments.
It's worth noting that Snap-on's stock has shown strong performance, with a 29.9% price total return over the last three months and a 36.57% return over the past year. The stock is currently trading near its 52-week high, with its price at 99.32% of the 52-week high value.
For investors seeking more comprehensive insights, InvestingPro offers 16 additional tips for Snap-on, providing a deeper understanding of the company's financial health and market position.
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