Some investments, you see, are less about riding the crest of the next disruptive wave and more about finding something that simply… exists. Continues to exist, even. It’s a profoundly underrated quality, really, in a universe that seems determined to unravel at the slightest provocation. I call them the ‘reliably boring’, and they’re where a sensible trader parks a portion of their capital. Not for excitement, naturally. Excitement is for people with more capital than sense.
These aren’t the companies making headlines with promises of virtual reality and sentient toasters. They make things people actually use. Tools, mostly, in this particular case. The sort of things that, if they suddenly ceased to be, would cause a surprisingly large amount of domestic chaos. (Consider, for a moment, the implications of a world without screwdrivers. It’s not pretty.) This lack of fanfare, oddly enough, is the point. It keeps the price down, and the dividend yield… well, let’s talk about the dividend.
Take Stanley Black & Decker (SWK +0.25%). It’s been around since 1843, which, in the grand scheme of things, is a mere blink of an eye, but long enough to accumulate a rather impressive track record of… existing. And paying dividends. Currently, it yields around 3.9%, which is almost double the S&P 500 average. (The S&P 500, incidentally, is a bit like a committee trying to decide what constitutes ‘average’. It’s rarely a satisfying answer.)
But here’s the truly remarkable bit: Stanley Black & Decker is a ‘Dividend King’. This means they’ve increased their dividend for at least 50 consecutive years. 58 years, to be precise. That’s a commitment. A stubborn refusal to succumb to the pressures of quarterly earnings reports and the fickle whims of the market. (It’s almost as if they’ve made a pact with some ancient, benevolent spirit of toolmaking. Don’t discount the possibility.)
Let’s be clear: this isn’t a growth stock. Revenue is…stable. It goes up a bit, down a bit. It’s the sort of chart that would induce a coma in a day trader. But they consistently beat earnings estimates. Which suggests they’re either remarkably efficient or exceptionally good at managing expectations. (Or both. The universe is rarely straightforward.)
Reliable, Dependable, and Remarkably Un-Disruptive
Founded in 1843 in New Britain, Connecticut (still there, amazingly), Stanley Black & Decker makes, well, tools. Hand tools, power tools, the things you use to build, repair, and occasionally dismantle things. Brands like DeWalt, Craftsman, Black + Decker… names that evoke a comforting sense of solid, practical functionality. (No sentient toasters here, thankfully.)
Even if you’re not particularly handy (and let’s be honest, most of us aren’t), you understand a power drill. You grasp its purpose. You appreciate its ability to make holes in things. It’s a fundamentally honest product. (Unlike some financial instruments, which seem to exist solely to confuse and baffle.)
That 3.9% dividend yield, by the way, is particularly attractive in the current interest rate environment. (The interest rate environment, incidentally, is a bit like a weather system. It changes constantly, and predicting it with any accuracy is largely a matter of luck.) At present, they pay $3.32 per share annually, in quarterly installments. It’s not going to make you a millionaire overnight, but it’s a steady, reliable income stream.
The five-year dividend growth rate is around 3.49%. And I suspect it will continue to grow. Once a company achieves Dividend King status, it tends to take it rather seriously. It’s a matter of pride, you see. (Or perhaps a deep-seated fear of disappointing the ancient spirit of toolmaking. One can never be certain.)
The share price has been a bit sluggish since 2020, admittedly. But it’s showing some signs of life, up about 13.5% year-to-date. It’s not exactly a rocket ship, but it’s a start. (And frankly, in the current market, any upward momentum is something to be celebrated.)
As Close to a Sure Thing as You’re Likely to Find
Will that growth continue? Who knows. The future is, as always, uncertain. But one thing you can be reasonably confident of is that Stanley Black & Decker will continue to pay, and likely increase, its dividend. Until, of course, the heat death of the universe. Or the ancient spirit of toolmaking finally decides it’s had enough. Whichever comes first.
There are no truly ‘sure things’ in investing. Even the most reliable companies can go bankrupt. But the odds of that happening to Stanley Black & Decker are…slim. It’s a solid, well-managed company with a long history of profitability and a commitment to returning value to shareholders. (It’s also, let’s face it, a company that makes things people actually need. Which is a surprisingly rare quality these days.)
If you’re looking for a nice, passive investment that you don’t need to obsess over, Stanley Black & Decker is definitely worth a look. It’s a tool for a savvy investor, if you will. (And a tool for people who need to build things, of course. But that’s almost incidental.)
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2026-01-20 05:33