Snap-on Incorporated: Beat Inflation With This Fairly Priced Dividend Stock

Imagine a stock that beats the S&P 500 while also offering a higher starting dividend yield and a lower price to earnings ratio.

Now imagine that this mystery stock also raises its dividends at a rate that outpaces inflation. With the latest hike being a full 14.8%!

The company you’re imagining is Snap-on Incorporated ($SNA).

Snap-on makes tools like hammers and wrenches, as well as diagnostic equipment and auto repair devices.

This is a company that’s been in business for over 100 years. And today, we’ll look at what makes Snap-on successful. And whether or not its a good investment.

What Does Snap-on Incorporated Do?

Snap-on makes tools. Which doesn’t sound like much of a niche at first, there are dozens of companies that make hammers and wrenches — until you look at Snap-on’s specific brands.

The company makes a lot of tools for the aerospace and automotive industries.

As the company website explains, Snap-on tools are used in:

[T]he manufacture and repair of small private airplanes, military helicopters, the most advanced…