Why Snap-on Is A Good Dividend Growth Pick For The Current Market

Sep. 29, 2022 9:00 AM ETSnap-on Incorporated (SNA) StockSNA3 Comments

Summary

  • Snap-on consistently grows its revenue and improves its profitability.
  • Tailwinds in the vehicle repair market should help the company. Management continues to report very high demand levels.
  • The business has impressive margins and a very solid balance sheet. The company generates strong free cash flow and pays out a fast growing dividend.
  • I believe that the risk to reward is favorable and that the current pullback is a decent entry point.
Snap-on mobile tool truck. Snap-on makes high end tools for professional and personal use.

jetcityimage

Investment Thesis

Snap-on (NYSE:SNA) is a consistent compounder. The company steadily grows its revenue and improves its profitability. It pays out a reliable dividend that compounds at a high rate. I also believe that tailwinds in the vehicle repair market reduce the

This article was written by

I'm searching for buy and hold stocks that will consistently outperform the market. I invest in both traditional value stocks and fast-growing companies trading at cheap valuations. My primary focus is on the tech, consumer and communication services sectors.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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