Snap-on Incorporated (SNA) will raise its quarterly dividend by 15.4 percent to $1.42 per share in 2021. This follows a dividend hike of 13.9 percent to $1.23 per share in 2020 and will mark the 12th consecutive year of higher dividend paid to shareholders by SNA.

The next SNA dividend is payable December 10, 2021 to shareholders of record on November 19, 2021. A new annual rate of $5.68 per share yields 2.7% at a stock price of $212.

Snap-on also announced today that its Board of Directors authorized a share repurchase program of up to $500 million of common stock, replacing the current share repurchase program under which, as of the end of the third quarter of 2021, approximately $194 million of authorization remained. An additional previously approved share repurchase program, which allows the company to repurchase up to the number of shares issued under the company’s various equity plans, remains in place. Including the new authorization, total share repurchase availability currently stands at approximately $503 million.

“The dividend increase and the new share repurchase program demonstrate our steadfast commitment to create long-term value for our shareholders and our ongoing belief that we’re well-positioned for the future,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “This twelfth consecutive annual dividend increase confirms the resilience and strength of our business as evidenced by our payment of consecutive quarterly cash dividends, without interruption or reduction since 1939, even during times of substantial turbulence. Our strong financial position and robust cash generation enables both our return of capital to shareholders and our support of ongoing strategic investment, organically and through acquisitions, along our defined runways for growth and improvement.”

Snap-on Incorporated has now increased its dividend by double digits for 10 consecutive years with an average annual dividend growth rate of 14.9 percent in the last five years. The company now pays an estimated $307 million in dividends to shareholders annually.

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education. Snap-on also derives income from various financing programs to facilitate the sales of its products and support its franchise business. Snap-on’s largest geographic markets include the United States, Europe, Canada and Asia/Pacific and its products and services are sold through the company’s franchisee, company-direct, distributor and internet channels. Snap-on was founded in 1920 and is headquartered in Kenosha, Wisconsin. The company has paid quarterly cash dividends without interruption or reduction since 1939.