Stanley Works (SWK) supplies industrial tools and security related products to a broad range of customers each representing about 1/3rd of company sales: professional, industrial and consumer. Many of the company's products are tied to construction and home improvement related segments of the economy.
Earlier this week the company announced a 3.1% increase in the company's third quarter dividend to 33 cents per share. This compares to 32 cents per share in the same period last year.
The payout ratio increases to 57% based on 2009 estimated earnings of $2.31 per share. Estimated earnings for 2010 are 20% higher at $2.79.
The 5-year average payout ratio is 37%.
The company carries an S&P Earnings & Dividend Quality Ranking of B+.
Click to enlarge: