Snap-on hikes dividend by 13.9%

Snap-on Incorporated (SNA) will raise its quarterly dividend by 13.9 percent to $1.23 per share in 2020. This follows a 13.7 percent to $1.08 per share in 2019 by the tools and equipment manufacturer and will mark the 11th consecutive year of higher dividend paid to shareholders.

The next dividend is payable December 10, 2020 to shareholders of record on November 20, 2020. A new annual rate of $4.92 per share yields 3.0% at a stock price of $161.71.

In the company's press release dated November 6, 2020 the company comments on the dividend hike: “Snap-on’s dividend is an essential component of our approach to capital allocation. It clearly testifies to the resilience and strength of our business as evidenced by our payment of consecutive quarterly cash dividends, without interruption or reduction since 1939, even through times of serious turbulence,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “This eleventh consecutive annual dividend increase demonstrates both our steadfast commitment to create long-term value for our shareholders and our ongoing belief that Snap-on is well-positioned for the future. In that regard, our strong financial position and our robust cash generation enable us in returning capital to our shareholders and in continuing to strategically invest, organically and through acquisitions, along our defined runways for growth and improvement.”

Snap-on Incorporated has now increased its dividend by double digits for nine consecutive years with an average annual dividend growth rate of 15.1 percent in the last five years. The company now pays an estimated $268 million in dividends to shareholders annually.

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education. Snap-on also derives income from various financing programs to facilitate the sales of its products and support its franchise business. Snap-on’s largest geographic markets include the United States, Europe, Canada and Asia/Pacific and its products and services are sold through the company’s franchisee, company-direct, distributor and internet channels. Snap-on was founded in 1920 and is headquartered in Kenosha, Wisconsin. The company has paid quarterly cash dividends without interruption or reduction since 1939.