I added more shares to my current position of Snap-on Incorporated (SNA)
10 shares @$170.46 on 12/13/2019.
This increases my forward 12-month dividend income by $43.20 to a total of $10,225.15. I also updated my portfolio page to reflect the change.
This company has been growing dividends at a very favorable rate. The 10-year dividend growth rate is 11%, and its 5-year dividend growth rate is 16.6%. The most recent dividend increase was 13.68%. As we can see, the Snap-on has been increasing dividends at the low double-digit rate. The current dividend yield is 2.55%. The dividend yield is not high but a respectable level, but it should grow since the company has a low payout ratio of 35.21%
Currently, Snap-on has a PE of 13.65, which is much lower than its 5-year average of 17.24. Also, the company forward PE is 13.23.
The Dividend Drill Return Model (DDRM) gives me a projected return of 10.4%. It is not outstanding, but I am pleased with this kind of return for such a safe and exceptional run company.
I find SNA to be undervalued, and I recommend it as a BUY at this time. I have a fair value price of $172.25. This means that SNA is 1.72% undervalued based on today’s price of $169.33 (12/23/2019).
Even though you are not getting a huge discount, but it is an outstanding company at a fair price.
What do you think about the company? Plan on owning it or already do? Or why not?
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