Just a couple of days before releasing its second-quarter 2014 results, Stanley Black & Decker Inc. (SWK) announced an increase of 2 cents per share in its quarterly dividend rate. The industrial tool maker’s share price gained 0.05%, closing the trading session at $86.37 yesterday.
As approved by Stanley Black & Decker’s board of directors, the quarterly dividend rate presently stands at 52 cents, up 4% from the prior rate of 50 cents. The new dividend will be paid on Sep 16, 2014 to shareholders of record on Sep 5. Annual dividend rate is $2.08 per share.
This revision marks the 47th annual consecutive increase for Stanley Black & Decker. Besides indicating the company’s commitment toward rewarding its shareholders handsomely, it also signifies a strong cash position. The company targets to achieve 30−35% dividend payout in the long run.
Earlier in Jul 2013, Stanley Black & Decker had announced a 2% or one cent per share increase in its quarterly dividend rate. During 2013, the company paid dividends amounting to $313 million.
Stanley Black & Decker is scheduled to report its second-quarter results on Jul 25 before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.37.
With a market capitalization of $13.5 billion, Stanley Black & Decker currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include NN Inc. (NNBR), Blount International Inc. (BLT) and MRC Global Inc. (MRC). While NN Inc. and Blount International sport a Zacks Rank #1 (Strong Buy), MRC Global holds a Zacks Rank #2 (Buy).
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