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!