Chief Investment Officer Matt Dmytryszyn was recently interviewed by Forbes about Snap-On’s dividend as part of a piece on dividend stocks that can provide investors with protection against inflation.
“The financial fundamentals of the business are strong with EBITDA margins over 27% leading to strong and sustainable free cash flow,” says Dmytryszyn. “Free cash flow has typically been double that of dividends paid, which leaves us comfortable in Snap-On’s ability to cover and grow its current dividend, which currently equates to a 2.6% yield.”