We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stanley Black Rewards Shareholders With 4.8% Dividend Hike
Read MoreHide Full Article
Stanley Black & Decker, Inc. (SWK - Free Report) announced roughly 4.8% increase in its quarterly dividend rate. This news seems to be the prime reason behind 1.9% gain in the industrial tool maker’s share price yesterday.
As revealed, the dividend hike, from 63 cents to 66 cents per share, was approved by the company’s board of directors. On an annualized basis, the dividend increased to $2.64 from $2.52 per share.
The company will pay the revised quarterly dividend on Sep 18, 2018, to shareholders of record as of Sep 7.
Stanley Black has a solid history of returning value to its shareholders through dividend payments. It has been paying annual dividends for the last 141 consecutive years. The current hike marks the company’s consecutive 51st annual dividend increase. Additionally, rewarding shareholders handsomely via share buybacks have always remained a priority. From 2000-2017, the company’s total shareholders’ return was 794%.
Notably, Stanley Black paid cash dividends of approximately $94.9 million and repurchased shares worth $11.4 million in the first quarter of 2018. Exiting the quarter, the company had cash and cash equivalents of $405.6 million. We believe that impressive financial performance in the quarters ahead will enable the company to continue rewarding its shareholders handsomely through dividend increments.
Stanley Black is slated to release its second-quarter 2018 results on Jul 20, before the market opens. The company anticipates earnings in the second quarter to be approximately 24% of the full year projection of $8.30-$8.50 per share. The yearly forecast reflects year-over-year growth of 11-14%.
In the long run, the company wishes to follow its 50/50 capital allocation strategy of acquisitions and rewarding shareholders. The dividend payout is predicted to be 30-35% in the long run. Also, in 2018, the company has executed a capped-call transaction and secured the option to purchase roughly 3.2 million shares by March 2021.
Zacks Rank & Key Picks
Stanley Black, with approximately $21.3 billion market capitalization, currently carries a Zacks Rank #3 (Hold). Solid growth potential, both on the organic and inorganic front, cost-savings and shareholder-friendly policies work well for the company. However, adverse impacts from the higher commodity inflation and tariffs limit the company’s growth momentum for 2018.
The Zacks Consensus Estimate on the stock increased roughly 0.15 to $8.44 per share for 2018 while remaining stable at $9.43 for 2019. Also, the projections reflect year-over-year growth of 13.3% for 2018 and 11.8% for 2019.
In the past 60 days, earnings estimates for both the stocks have improved for the current year. Also, average positive earnings surprise for the last reported quarter was 36.96% for Atkore International, 8.33% for Actuant and 27.66% for AZZ.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Stanley Black Rewards Shareholders With 4.8% Dividend Hike
Stanley Black & Decker, Inc. (SWK - Free Report) announced roughly 4.8% increase in its quarterly dividend rate. This news seems to be the prime reason behind 1.9% gain in the industrial tool maker’s share price yesterday.
As revealed, the dividend hike, from 63 cents to 66 cents per share, was approved by the company’s board of directors. On an annualized basis, the dividend increased to $2.64 from $2.52 per share.
The company will pay the revised quarterly dividend on Sep 18, 2018, to shareholders of record as of Sep 7.
Stanley Black has a solid history of returning value to its shareholders through dividend payments. It has been paying annual dividends for the last 141 consecutive years. The current hike marks the company’s consecutive 51st annual dividend increase. Additionally, rewarding shareholders handsomely via share buybacks have always remained a priority. From 2000-2017, the company’s total shareholders’ return was 794%.
Notably, Stanley Black paid cash dividends of approximately $94.9 million and repurchased shares worth $11.4 million in the first quarter of 2018. Exiting the quarter, the company had cash and cash equivalents of $405.6 million. We believe that impressive financial performance in the quarters ahead will enable the company to continue rewarding its shareholders handsomely through dividend increments.
Stanley Black is slated to release its second-quarter 2018 results on Jul 20, before the market opens. The company anticipates earnings in the second quarter to be approximately 24% of the full year projection of $8.30-$8.50 per share. The yearly forecast reflects year-over-year growth of 11-14%.
In the long run, the company wishes to follow its 50/50 capital allocation strategy of acquisitions and rewarding shareholders. The dividend payout is predicted to be 30-35% in the long run. Also, in 2018, the company has executed a capped-call transaction and secured the option to purchase roughly 3.2 million shares by March 2021.
Zacks Rank & Key Picks
Stanley Black, with approximately $21.3 billion market capitalization, currently carries a Zacks Rank #3 (Hold). Solid growth potential, both on the organic and inorganic front, cost-savings and shareholder-friendly policies work well for the company. However, adverse impacts from the higher commodity inflation and tariffs limit the company’s growth momentum for 2018.
The Zacks Consensus Estimate on the stock increased roughly 0.15 to $8.44 per share for 2018 while remaining stable at $9.43 for 2019. Also, the projections reflect year-over-year growth of 13.3% for 2018 and 11.8% for 2019.
Stanley Black & Decker, Inc. Price and Consensus
Stanley Black & Decker, Inc. Price and Consensus | Stanley Black & Decker, Inc. Quote
In the past month, shares of Stanley Black & Decker have increased nearly 1.1%, outperforming 0.5% gain recorded by the industry.
Some better-ranked stocks in the Zacks Industrial Products sector are Atkore International Group Inc. (ATKR - Free Report) , Actuant Corporation and AZZ Inc. (AZZ - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for both the stocks have improved for the current year. Also, average positive earnings surprise for the last reported quarter was 36.96% for Atkore International, 8.33% for Actuant and 27.66% for AZZ.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>