Summary
- Stanley Black & Decker has one of the more impressive dividend growth streaks in the market.
- The company is facing a number of headwinds, but has able to improve earnings and revenue despite these challenges.
- The company also has a very low dividend payout ratio, making it highly likely that the dividend can withstand the next recession.
- The stock's valuation is slightly above its long-term history, but below that of the market.
- For these reasons, I find Stanley Black & Decker to be a buy.
Perhaps a bit under the radar to many dividend growth investors, Stanley Black & Decker (SWK) has been a great long-term investment as the stock has performed extremely well when compared to the S&P 500.
Source: YCharts
What stands out from this chart is how Stanley Black & Decker's stock has routinely beaten the S&P 500 over various periods of time. This means that the company's business has held up through several recessions.
In addition, Stanley Black & Decker is a Dividend King and has the twenty-third longest dividend growth streak according to the U.S. Dividend Champions.
The combination of the stock performance and dividend growth has me interested in owning shares of Stanley Black & Decker, but I am more interested in where a stock is going than where it came from. So, let's examine the company's most recent earnings results, its ability to continue growing dividends and areas of concern to see if Stanley Black & Decker is a buy today.
