Hand and power tools maker Stanley Black & Decker, Inc. (SWK) on Wednesday posted disappointing second quarter earnings and announced a substantial increase to its quarterly dividend payout.

The New Britain, CT-based company reported second quarter net income of $154.8 million, or 92 cents per share, compared with $197.3 million, or $1.14 per share, in the year-ago period. Excluding special charges, adjusted profit was $1.32 per share.

Revenue rose 8% from last year to $2.81 billion.

On average, Wall Street analysts expected a much higher profit of $1.52 per share, on larger revenue of $2.9 billion.

On a positive note, SWK said its board of directors approved a 19.5% boost to its quarterly dividend payout. The new dividend of 49 cents per share (up from 41 cents) will be paid on Sept. 18 with an ex-dividend date of Sept. 5.

Stanley Black & Decker shares fell $1.21, or -2%, in premarket trading Wednesday.

The Bottom Line
Shares of Stanley Black & Decker (SWK) will now have a 3.28% dividend yield, based on the higher dividend payout and last night’s closing stock price of $59.72. The stock has technical support in the $53-$55 price area. If the shares can firm up, we see overhead resistance around the $65 price level.

Stanley Black & Decker, Inc. (SWK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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