The Board of Directors for industrial tool producer Stanley Black & Decker (NYSE:SWK) has approved an increase to its quarterly dividend. The company's payout will go up $0.01 to a total of $0.50 per share, and will be payable on Sept. 17 to recorded shareholders as of Sept. 6.

John Lundgren, Stanley Black & Decker's CEO, said the new payout increase was part of the company's commitment to return cash to shareholders and also "reflects our confidence in [the company's] ability to generate free cash flow and maintains our compelling dividend yield." The annual yield is about 2.4%.

This announcement marks the 46th consecutive annual dividend increase for Stanley Black & Decker. Since the beginning of 2013 the company has seen its price per share rise from $73.97 to $83.89.


Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.