Dividend Aristocrats Ranked By Yield: Top 10

8. Stanley Black & Decker, Inc. (NYSE: SWK)

Dividend Yield as of June 25: 3.90%

Stanley Black & Decker, Inc. (NYSE:SWK) is a Connecticut-based manufacturing company that specializes in industrial tools and household hardware. In June, Barclays downgraded the stock to Equal Weight with an $86 price target as the firm noted that the company is experiencing weak demand from consumers and DIY enthusiasts. The firm further mentioned that for the stock to perform well, rapid increases in earnings per share (EPS) will likely be necessary, but Barclays believes that current market EPS estimates are overly optimistic.

We agree with Barclays’ observation about consumer weakness, as Stanley Black & Decker, Inc. (NYSE:SWK) described its Q1 2024 consumer demand as ‘muted’ and noted a decline in volumes within its infrastructure segment. That said, the company dominates the Tools & Outdoor segment, which saw its margin increase to 7.8% YoY, up 720 basis points from the previous year. The segment’s revenue for the quarter fell slightly by 1% from the same period last year. In addition, Stanley Black & Decker, Inc. (NYSE:SWK) exceeded analysts’ estimates in the first quarter of 2024 on various fronts. The company reported EPS of $0.56 and revenue of $$3.87 billion, both beating Street consensus by $0.01 and $35.7 million, respectively. It expects that demand trends will vary across its businesses in 2024. To manage this, it is concentrating on reducing supply chain costs to enhance margins, drive earnings growth, and generate solid cash flow. In addition, the company is investing in growth initiatives to boost innovation and develop unique market strategies, aiming to capitalize on promising long-term opportunities.

On April 26, Stanley Black & Decker, Inc. (NYSE:SWK) declared a quarterly dividend of $0.81 per share, which was consistent with its previous dividend. In 2023, the company achieved its 57th consecutive annual dividend hike. Moreover, it has paid uninterrupted dividends to shareholders for the past 147 years, which makes SWK one of the best dividend aristocrat stocks on our list. The stock offers a dividend yield of 3.90%, as of June 25.

Stanley Black & Decker, Inc. (NYSE:SWK) was a part of 31 hedge fund portfolios at the end of Q1 2024, the same as in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $715 million.