Stanley Works Raises Dividend for 41st Straight Year

Stanley Works (SWK) announced a 3.2% increase in the company's third quarter dividend. The new quarterly dividend will be 32 cents per share versus 31 cents per share in the same quarter last year. This represents the fifth year in a row the quarterly dividend has been increased by a penny. This increase represents the company's 41st consecutive annual dividend increase.

• The estimated payout ratio is expected to equal 31% versus the 5-year average payout ratio of 46%. In 2003 the company reorganized certain business including exiting the Mac Tools retail channel. Consequently, the dividend payout ratio was 90% in 2003 due to some non-cash charges in that year.

• SWK is one of S&P's Dividend Aristocrats.

• The company has a Standard & Poor's Quality Ranking of B+.

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