Dividend Aristocrat Stanley Black & Decker (SWK)
Stanley Black & Decker has increased their dividend for 54 consecutive years making it a Dividend Aristocrat, Dividend Champion and a Dividend King. A Dividend King is a dividend paying growth stock that has increased its dividend for more than 50 years. Consequently, this class of dividend paying stocks is the crème de la crème for investors seeking a growing dividend income stream.
Unfortunately, most Dividend Aristocrats are overvalued in today’s expensive market. This is also true of Stanley Black & Decker prior to the last 12 months. However, the company’s stock price has continued to drop to unjustifiable levels making it a strong value play. At its current valuation, the stock offers an earnings yield exceeding 7.5%, a dividend yield of 2.19% and is available at a blended P/E ratio of 13.17. As a result, the company now provides prudent investors a high level of predictability, a margin of safety and the opportunity for double digit future returns.
Bonus: Here is a link to a previous video I produced on Stanley Black & Decker on July 9, 2018. I hope you enjoy both videos, and appreciate how far FAST Graphs have evolved since 2018 – enjoy!
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Disclosure: Long SWK.
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.