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Alberto Abaterusso
Alberto Abaterusso
Articles (2145) 

3 Loyal Payers Announce Dividends

They have a long history of dividend payments and growth

April 24, 2020 | About:

Snap-on Inc (NYSE:SNA), Avery Dennison Corp (NYSE:AVY) and Carpenter Technology Corp (NYSE:CRS) announced quarterly dividends on Thursday, April 23. These companies are also loyal payers, as they have been paying dividends for decades.

Snap-on Inc

The Kenosha, Wisconsin-based manufacturer and marketer of tools and accessories for professional users worldwide announced that on June 10, it will pay a quarterly cash dividend of $1.08 per common share, which is on par with the previous distribution. The dividend is for shareholders of record May 21. The ex-dividend date is scheduled for May 20.

Based on Thursday’s closing share price of $113.67, the quarterly dividend generates a forward dividend yield of 3.8%, while the S&P 500 index, which is often used as a benchmark for the U.S. market, yields 2.13%.

Snap-on Inc has been distributing dividends for nearly 30 years. The company has increased its dividends at a compound annual growth rate of nearly 16.3% over the past five years.

The company sustains the payment of the quarterly dividend with cash available on hand and with cash flows that come from operating activities. As of the most recent quarter, which ended on March 27, 2020, the balance sheet had $185.6 million in cash on hand and trailing 12-month operating cash inflows of $686.7 million.

Over the past year, the share price fell by 32.4% for a 52-week range of $90.72 to $174. The stock has a market cap of $6.18 billion, a price-earnings ratio of 9.67 versus the industry median of 15.66 and a price-sales ratio of 1.5 versus the industry median of 0.89.

Wall Street sell-side analysts recommend an overweight rating for shares of Snap-on Inc and have established an average target price of $130.4 per share. 

Avery Dennison Corp

The Glendale, California-based producer and global seller of pressure-sensitive materials for labeling and packaging announced that on June 17, it will pay a 58 cents quarterly cash dividend per common share, which is in line with the previous distribution. The payment will be made to shareholders of record as of June 3. The ex-dividend date is scheduled for June 2.

Based on Thursday’s closing share price of $106.73, the quarterly cash dividend generates a forward dividend yield of 2.17% compared to the S&P 500's 2.13%. Avery Dennison Corp has been paying dividends for nearly three decades and increased them by a CAGR of 11% over the past five years.

The company covers the dividend payment with liquidity available on hand and funds generated by operating activities. As of the most recent quarter, which ended on Dec. 27, 2019, the balance sheet reported nearly $285 million in total cash on hand, while activities for the 12 months prior brought in cash flows of $746.5 million.

Over the past year, the stock price has slightly declined by 1.6% for a 52-week range of $76.96 to $141.09. The stock has a market cap of nearly $9 billion, a price-earnings ratio of 29.81 versus the industry median of 15.66 and a price-sales ratio of 1.28 versus the industry median of 0.89.

Wall Street sell-side analysts recommend an overweight rating for shares of Avery Dennison Corp and have set an average target price of $116.70 per share.

Carpenter Technology Corp

The Philadelphia, Pennsylvania-based manufacturer and global distributor of specialty metals announced that on June 4, it will pay a quarterly cash dividend of 20 cents per common share, which is on par with the previous distribution. In order to benefit from the dividend, shareholders must be on the company’s record not later than May 5. The ex-dividend date is scheduled for May 4.

Based on Thursday’s closing share price of $18.20, the quarterly dividend produces a forward dividend yield of 4.4% compared to the S&P 500's 2.13%. Carpenter Technology Corp has been paying dividends for nearly three decades and increased them at a CAGR of 2.1% over the past five years.

The company funds the quarterly dividend through cash available on hand of approximately $30 million as of the most recent quarter, which ended on Dec. 30, 2019. Activities for the prior 12 months also helped the company to sustain the dividend thanks to the generation of cash flow of nearly $210 million.

Over the past year, the share price has tumbled 63.5%, determining a 52-week range of $13.60 to $56.33. The stock has a market cap of around $870 million, a price-earnings ratio of 4.93 versus the industry median of 15.66 and a price-sales ratio of 0.36 versus the industry median of 0.89.

Wall Street sell-side analysts recommend a moderate buy rating for shares of Carpenter Technology Corp and have established an average target price of $41.50 per share.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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