Covered, compounding — tool cash, big raise. A 2.73% yield on $2.44 a quarter is covered at about a 51% trailing payout. The rate was raised 14% in late 2025, from $2.14, and Snap-on has paid consecutive quarterly dividends without interruption or reduction since 1939 — a long record, with a payout that still leaves about half of earnings retained.
Key risk: Technician and industrial demand — vehicle-repair and industrial spending soften in a downturn, and the franchise-van channel concentrates that exposure.
Changes if: The payout pushes well past about 51%, or the raise pace breaks after the 14% step.
- ✓Payout-coverage check: About 51% trailing — the $9.76 indicated dividend leaves about half of earnings retained.
- ✓Yield check: 2.73% indicated — $2.44/qtr × 4 at the $357.02 close on Oct. 23, 2026. Ordinary cash dividend, not a special.
- ✓Dividend growth check: Raised 14% in November 2025, from $2.14 to $2.44; consecutive quarterly dividends, without interruption or reduction, since 1939.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.