Stanley Black's (SWK) Board Okays 1.4% Hike in Dividend Rate

Stanley Black & Decker, Inc. SWK yesterday announced a reward for its shareholders in the form of an increase in the quarterly dividend payout rate. The increment marks its 53rd consecutive year of a dividend rate increase.

We believe that such shareholder-friendly policies are reflective of the company’s strong cash position.

Inside the Headlines

As revealed, the board of directors of Stanley Black approved a hike of 1.4% or one cent per share in the quarterly dividend rate. The revised rate now stands at 70 cents per share. On an annualized basis, the dividend increased to $2.80 per share from the previous rate of $2.76.

Stanley Black will pay out the revised dividend on Sep 15, 2020, to shareholders of record as of Sep 1.

Sound Shareholder-Friendly Policies

The company firmly believes in rewarding shareholders handsomely through dividend payments and share buybacks. Its dividend payout amounted to $2.70 per share in 2019, higher than $2.42 in 2017. Moreover, the company repurchased shares worth $583.3 million in three years (2017-2019).

In first-quarter 2020, it distributed cash dividends of $105.6 million, up 8.2% from the year-ago quarter.

Zacks Rank, Earnings Estimate Trend and Price Performance

With a market capitalization of $21.9 billion, Stanley Black currently carries a Zacks Rank #2 (Buy). Amid the pandemic-induced difficulties, the company stands to benefit from solid product offerings, healthy U.S. retail channels and cost-savings measures.

In the past three months, the company’s shares have gained 37.2% against the industry’s growth of 8.3%. Notably, the S&P 500 has risen 14.5% and the Zacks Industrial Products sector has grown 24.2% during the same period.


Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $5.84 for 2020 and $7.42 for 2021, marking increases of 16.1% and 9.9% from the respective 60-day-ago figures. Notably, there have been six upward revisions (versus one downward change) for 2020 and five upward revisions (versus one downward) for 2021 in the past 60 days.

Stanley Black Decker, Inc. Price and Consensus


Stanley Black  Decker, Inc. Price and Consensus

Stanley Black Decker, Inc. price-consensus-chart | Stanley Black Decker, Inc. Quote

Also, earnings estimates for the second quarter have improved from 11 cents to 84 cents per share in the past 60 days. Stanley black is slated to release its second-quarter results on Jul 30, 2020, before market open.

Other Stocks to Consider

Some other top-ranked stocks in the sector are II-VI Incorporated IIVI, Chart Industries, Inc. GTLS and Altra Industrial Motion Corp. AIMC. While II-VI currently sports a Zacks Rank #1 (Strong Buy), both Chart Industries and Altra Industrial carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, earnings estimates for these companies improved for the current year. Further, earnings surprise for the last reported quarter was 213.33% for II-VI, 16.33% for Chart Industries and 47.73% for Altra Industrial.

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

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