Stanley Black & Decker Increases Dividend - Analyst Blog

By Zacks Equity Research,

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A day before announcing its second quarter 2013 financial results, industrial tool maker, Stanley Black & Decker Inc. ( SWK ) announced an increase of 2% or a cent in its quarterly dividend rate.

The revised dividend rate now stands at 50 cents, with annualized dividend rate coming at $2.00 per share. The increase marks the 46th annual consecutive increase for Stanley Black & Decker. The new dividend will be paid on Sep 17, 2013 to shareholders of record on Sep 6, 2013.

Over time, Stanley Black & Decker follows a consistent policy of returning cash to its shareholders via share buybacks and dividend payments. The company's long-term capital allocation objectives include returning roughly one-third of the allocated amount to shareholders.

Earlier in Jul 2012, Stanley Black & Decker had announced a 20% increase in its quarterly dividend rate and a share buyback program of roughly 20 million shares.

Stanley Black & Decker is slated to release its second quarter 2013 financial results on Jul 26, 2013. The Zacks Consensus Estimate for the quarter currently is at $1.19 while estimates for years 2013 and 2014 are at $5.45 and $6.30, respectively. These estimates represent year-over-year decline of 9.5% for the second quarter 2013 while growth of 16.6% and 15.6% for 2013 and 2014, respectively is estimated.

Stanley Black & Decker currently has a $13.4 billion market capitalization. The stock currently carries a Zacks Rank #4 (Sell).

The companies that closely compete with Stanley Black & Decker are Lincoln Electric Holdings Inc. ( LECO ), Actuant Corporation ( ATU ) and Kennametal Inc. ( KMT ).

ACTUANT CORP (ATU): Free Stock Analysis Report

KENNAMETAL INC (KMT): Free Stock Analysis Report

LINCOLN ELECTRC (LECO): Free Stock Analysis Report

STANLEY B&D INC (SWK): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: ATU , KMT , LECO , SWK

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