), a leading industrial goods manufacturer recently announced a
15.8% quarterly dividend increase, from 38 cents a share to 44
cents per share.
Snap-on has a consistent track record of not only paying
quarterly dividends but also increasing the same every year,
since 1985. The latest hike brings the forward annual dividend
yield, as of Nov 8 2013, to 1.68%. The increased quarterly
dividend will be paid on Dec 10, 2013, to stockholders of record
as of Nov 22.
The company's commitment toward increasing shareholder return
reflects its free cash flow generating capability, sound
liquidity position and defined future prospects. Exiting the
quarter, Snap-on's cash and cash equivalents were $182.5 million
compared with $176.1 million in the prior-year quarter, whereas
the company's long-term debt has reduced to $861.1 million as on
Sep 28, 2013 compared to $970.4 million on Dec 29, 2012.
Snap-on's performance is being primarily driven by its ongoing
strategic investments to strengthen its mobile tool distribution
network, proliferation in the vehicle repair garage, expansion of
critical industries and expansion in the emerging markets. Its
recent acquisition of Challenger Lifts, Inc and increased sales
in Original Equipment Manufacturer (OEM) business are also aiding
the growth momentum. The company is witnessing an economic
recovery in its end markets and is focused on deriving benefits
from the emerging markets.
Snap-on currently has a Zacks Ranks #2 (Buy). Some other
stocks operating in the same industry which are also worth a look
at the moment are
Emerge Energy Services LP
), which carries a Zacks Rank #1 (Strong Buy), and
Core Laboratories NV
Baker Hughes Inc.
) both having a Zacks Rank #2 (Buy).
BAKER-HUGHES (BHI): Free Stock Analysis
CORE LABS NV (CLB): Free Stock Analysis
EMERGE ENRG SVC (EMES): Free Stock Analysis
SNAP-ON INC (SNA): Free Stock Analysis Report
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