How Stanley Black & Decker (SWK) Became a Trusted Name in the Dividend Champions Circle

Stanley Black & Decker, Inc. (NYSE:SWK) is included among the Best Dividend Stocks for a Dividend Champions List.

Stanley Black & Decker, Inc. (NYSE:SWK) is a household name in tools and hardware, with a history that stretches back more than a century. Its portfolio includes some of the most familiar brands in the space, like Stanley, Black+Decker, and Craftsman.

The past few years have been a bumpy ride. When the pandemic hit, demand for home improvement and DIY projects exploded, and sales took off. Riding that wave, Stanley Black & Decker, Inc. (NYSE:SWK)doubled down, taking on debt and spending nearly $2 billion on acquisitions in late 2021. But the surge didn’t last. Much of the demand had simply been pulled forward, and as conditions normalized, sales slipped back. The stock has lost more than half its value over the last five years, a sharp reversal from its pandemic-era highs.

Today, the bulk of revenue still comes from tools and outdoor products, which remain the company’s core. In 2024, sales came in at $15.4 billion, roughly flat with the prior year once you strip out the effects of acquisitions, divestitures, and currency swings.

That said, Stanley Black & Decker, Inc. (NYSE:SWK) is a Dividend King, which means that the company has been growing its payouts annually for 59 years. This is one of the longest growth streaks in the market, and was certainly not easy to achieve, considering the company’s recent performance. This shows that its balance sheet is in place to support its future payouts as well. Currently, it offers a quarterly dividend of $0.83 per share for a dividend yield of 4.48%, as recorded on October 2.

While we acknowledge the potential of SWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.