Stanley Black & Decker is adding a penny to its quarterly dividend, raising it to 34 cents a share, reflecting an abundance of cash flowing through the New Britain hand- and power-tool maker since its four-month-old merger.
News of the dividend hike comes two days before Stanley B&D is scheduled to announce its second-quarter results before the stock market opens on Wednesday. A dividend increase usually is a harbinger of solid financial performance.
The former Stanley Works merged its handtool and security-access business with Black & Decker Corp.’s household and commercial powertools lines in a $4.5 billion merger in March.
CEO John F. Lundgren said sharing some of that free cash flow with stockholders is one component of the company’s capital allocation strategy.
The dividend will be paid on Sept. 21 to stockholders of record as of Sept. 3.
