Snap-On Incorporated to Issue Quarterly Dividend of $2.44 (NYSE:SNA)

Key Points

• Quarterly dividend: Snap‑On declared a quarterly dividend of $2.44 per share, payable June 10 to shareholders of record on May 20, implying an annualized payout of $9.76 and a yield of about 2.5%.
• Dividend sustainability: The company has raised its dividend every year for 15 years and currently has a payout ratio of ~48.8%; analysts forecast EPS that would lower the expected payout ratio to ~46.6%, suggesting the dividend is covered by earnings.
• Recent performance: Snap‑On reported Q1 EPS of $4.69 (missed estimates by $0.06) on $1.21B revenue (up 5.8% YoY) and the stock trades near $386 with a market cap around $20B and a P/E of about 20.

Snap-On Incorporated (NYSE:SNA - Get Free Report) declared a quarterly dividend on Thursday, April 30th. Shareholders of record on Wednesday, May 20th will be given a dividend of 2.44 per share on Wednesday, June 10th. This represents a c) annualized dividend and a yield of 2.5%. The ex-dividend date is Wednesday, May 20th.

Snap-On has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 15 years. Snap-On has a payout ratio of 48.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Snap-On to earn $20.95 per share next year, which means the company should continue to be able to cover its $9.76 annual dividend with an expected future payout ratio of 46.6%.

Snap-On Trading Up 0.8%

Shares of SNA opened at $386.34 on Friday. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.74 and a current ratio of 3.53. Snap-On has a fifty-two week low of $301.82 and a fifty-two week high of $400.88. The company's fifty day moving average is $374.37 and its 200 day moving average is $360.04. The stock has a market capitalization of $20.01 billion, a PE ratio of 19.94, a P/E/G ratio of 2.66 and a beta of 0.77.

Snap-On (NYSE:SNA - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The company reported $4.69 earnings per share for the quarter, missing analysts' consensus estimates of $4.75 by ($0.06). Snap-On had a net margin of 21.28% and a return on equity of 17.13%. The firm had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter last year, the firm earned $4.51 EPS. The company's revenue was up 5.8% on a year-over-year basis. Sell-side analysts expect that Snap-On will post 19.75 earnings per share for the current fiscal year.

Snap-On Company Profile

Snap‑On Incorporated NYSE: SNA is a designer, manufacturer and marketer of tools, diagnostic equipment, repair information and shop equipment for professional users. The company's product range includes hand and power tools, tool storage and cabinets, diagnostic scan tools and software, shop equipment such as lifts and tire changers, and specialized specialty tools for automotive, aviation, marine and industrial applications. Snap‑On also offers information and workflow solutions that combine diagnostic data, repair procedures and parts information to support professional technicians.

Founded in 1920 and headquartered in Kenosha, Wisconsin, Snap‑On has established a long history in the professional tools market.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.