2024-05-19 11:49:49 ET
Summary
- Stanley Black and Decker's financial performance is stagnant, with little growth and a low net positive cash flow.
- The sustainability of the dividend is questionable, as the company may need to borrow more to fund it.
- The stock is not a good investment compared to the risk-free Treasury Note, unless it drops in price by 25-30%.
In my ongoing effort to pick out the best so-called “dividend aristocrats”, I thought I’d review Stanley Black and Decker, Inc. ( SWK ) this morning to see if it makes sense to buy the shares at current prices. I’ll make this determination by looking at the financial health of the firm, focusing specifically on the health and sustainability of the dividend. I want to also compare the dividend to the risk free alternative, remembering that investors should be compensated for taking on more risk. Stocks have some risks present that Treasuries do not, so I would expect a stock to pay me much more....
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Stanley Black & Decker: A Relatively Mediocre Investment