SWK - 3 Surefire Dividend Kings That Are No-Brainer Buys in 2023
Dividend Kings are S&P 500 components that have paid and raised their dividends for at least 50 consecutive years. So naturally, investors gravitate toward these stable stalwarts during times of heightened volatility, economic uncertainty, and recession fears.
In general, a company that has a track record for increasing its dividend has plenty of extra earnings and free cash flow to support that growing expense. And for that reason, these companies tend to take market share during downturns and do well during bear markets -- as investors saw with the 2022 outperformance of Emerson Electric (NYSE: EMR) and Illinois Tool Works (NYSE: ITW) . However, even Dividend Kings can falter -- as was the case with Stanley Black & Decker 's (NYSE: SWK) 60% decline in 2022.
Here's the case for buying Emerson Electric and Illinois Tool Works even though both companies are near their all-time highs, as well as the case for buying Stanley Black & Decker near its eight-year low.
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3 Surefire Dividend Kings That Are No-Brainer Buys in 2023