#7 - Snap-On (NYSE:SNA)
If you’re a fan of traditional value stocks, then we’ve saved the best for last. Snap-On (NYSE: SNA) is an example of a stock that might not have the sizzle of other stocks, but it simply gets the job done for dividend investors.
The industrial product manufacturer has exposure to some of the hottest sectors including home repair, housing, OEM and aftermarket auto, and the tech sector. That’s a key reason why the stock has charged ahead over 68% in the last 12 months.
However, be advised that a broader look at the SNA stock chart shows that such growth is clearly the exception and not the norm. With that in mind, easy gains may be gone. But the company has a rock-solid balance sheet and a commitment to shareholder value.
The company has increased its dividend in each of the last 11 consecutive years and it has a three-year average dividend growth of over 58%. This is a buy-
About Snap-on
Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments.
Read More - Current Price
- $365.97
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $345.40 (5.6% Downside)
The reopening-fueled rally that is taking place in the United States is certainly putting the strategy of looking for undervalued stocks to the test. However, even if you’re still bullish on the overall market, proper diversification suggests you should set aside a bit of your portfolio for value stocks.
In some cases, an undervalued stock pays out a nice dividend. In bull markets, the benefits of dividends can become unfashionable. But when markets are volatile, a dividend can boost a stocks total return which can allow many value stocks to more closely approximate growth stocks.
For investors that want the benefit of value stocks without selecting their own stocks, a value-focused exchange-traded fund (ETF) can be a compelling alternative. One of the best in 2021 is the Invesco S&P SmallCap 600 Pure Value ETF (NYSEARCA:RZV). The fund has delivered a 12-month return of over 117% and pays an annual dividend yield of 0.47%.
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