Updated on February 6th, 2025 by Felix Martinez
Investing in high-quality dividend growth stocks can lead to outstanding long-term returns. Investors looking for dividend income and sustainable growth should start with the Dividend Aristocrats, an exclusive group of companies that have raised their dividends for 25+ consecutive years.
With this in mind, we created a full list of all 69 Dividend Aristocrats and essential financial metrics like dividend yields and price-to-earnings ratios.
You can download an Excel spreadsheet with the full list of Dividend Aristocrats by using the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
There are only 69 Dividend Aristocrats. This article will review diversified industrial manufacturer Stanley Black & Decker (SWK).
Stanley Black & Decker has an amazing track record of dividend payments. The company has paid dividends for 148 years and has increased its dividend yearly for 57 consecutive years. Today, the company’s dividend appears safe relative to its underlying fundamentals.
This article will discuss the qualities that have made Stanley Black & Decker a time-tested dividend growth stock.
Business Overview
Stanley Black & Decker is the result of Stanley Works’ $3.5 billion acquisition of Black & Decker in 2009. Stanley Works and Black & Decker were both named after their respective founders. Stanley Works was formed in 1843 when Frederick Stanley started a small shop in New Britain, Connecticut, where he manufactured bolts, hinges, and other hardware. His products developed a reputation for their quality.
Meanwhile, Black & Decker was started by Duncan Black and Alonzo Decker in 1910. Like Stanley, they opened a small hardware shop. In 1916, they obtained a patent to manufacture the world’s first portable power tool.
Over the past 176 years, Stanley Black & Decker has steadily grown into one of the world’s largest industrial product manufacturers.
Source: Investor Presentation
Its main products include hand tools, power tools, and related accessories. It also produces electronic security solutions, healthcare solutions, engineered fastening systems, and more.
The company has annual sales of more than $15 billion. It operates three business segments: Tools & Storage, Security, and Industrial products.
The company has produced excellent growth rates in recent years primarily due to an aggressive acquisition strategy.
Growth Prospects
On February 5th, 2025, Stanley Black & Decker announced fourth quarter and full-year results for the period ending December 31st, 2024. The company reported stable organic growth and improved margins. Full-year revenue was $15.4 billion, down 3% due to the infrastructure divestiture and currency impact, while DEWALT and aerospace fasteners drove organic growth. Fourth-quarter revenue remained flat at $3.7 billion, but gross margin improved to 30.8%, reflecting cost reduction efforts.
Source: Investor Presentation
Competitive Advantages & Recession Performance
Stanley Black & Decker’s brand portfolio and global scale are its main competitive advantages. Innovation and scalability are at the core of the company’s growth strategy. It has a leadership position in its three product categories, and its brand strength gives the company pricing power, leading to high-profit margins.
Furthermore, it is relatively easy for the company to scale up its brands, thanks to distribution efficiencies.
Stanley Black & Decker constantly invests in product innovation to retain these competitive advantages. That said, Stanley Black & Decker is not immune from recessions. Earnings declined significantly in 2008 and 2009. As an industrial manufacturer, Stanley Black & Decker is reliant on a strong economy and a financially-healthy consumer.
Stanley Black & Decker’s earnings-per-share during the Great Recession are below:
- 2007 earnings-per-share of $4.00
- 2008 earnings-per-share of $3.41 (15% decline)
- 2009 earnings-per-share of $2.72 (20% decline)
- 2010 earnings-per-share of $3.96 (46% increase)
Despite the steep decline in earnings from 2007-2009, Stanley Black & Decker recovered just as quickly. Earnings-per-share increased another 32% in 2011 and reached a new high. Earnings have continued to grow in the years since.
Valuation & Expected Returns
Using the current share price of ~$86 and expected earnings-per-share for 2025 of ~$5.25, Stanley Black & Decker has a price-to-earnings ratio of 16.4. This is higher than the long-term average valuation of 12.
Stanley Black & Decker stock appears to be overvalued, given that its price-to-earnings ratio is higher than its historical norm, which is also above our fair value estimate for the stock of 15 times earnings. If the stock’s valuation were to compress to meet its historical average by 2030, investors would experience a -1.7% headwind to annualized total returns over this time.
Therefore, returns will likely be comprised of earnings growth, dividends, and valuation multiple compression. Due to organic growth and acquisitions, we feel that an expected EPS growth rate of 8% per year is sustainable.
The stock has a current dividend yield of 3.8%. Based on this, total returns would reach approximately 9.1% annually, consisting of earnings growth, dividends, and valuation multiple compression. This is a good expected rate of return, meaning Stanley Black & Decker stock has a hold recommendation.
Final Thoughts
Stanley Black & Decker is not a high-yield stock, but it has all of the qualities of a strong dividend growth stock. It has a top position in its industry, strong cash flow, and durable competitive advantages.
The company’s positive growth outlook bodes well for the dividend. The stock appears fairly valued today. Additionally, Stanley Black & Decker will likely continue to hike its dividend each year for the foreseeable future.
Since the stock is expected to produce positive annualized total returns over the next five years, Stanley Black & Decker stock is a good pick for long-term dividend growth investors.
Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:
- The Dividend Contenders List: 10-24 consecutive years of dividend increases.
- The Dividend Challengers List: 5-9 consecutive years of dividend increases.
- The Dividend Champions: Dividend stocks with 25+ years of dividend increases, including those that may not qualify as Dividend Aristocrats.
- The Dividend Achievers: dividend stocks with 10+ years of consecutive dividend increases.
- The Dividend Kings: considered to be the ultimate dividend growth stocks, the Dividend Kings list is comprised of stocks with 50+ years of consecutive dividend increases
If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:
- The Complete List of Monthly Dividend Stocks: stocks that pay dividends each month, for 12 payments over the year.
- The Blue Chip Stocks List: this database contains stocks that qualify as either Dividend Achievers, Dividend Aristocrats, or Dividend Kings.
The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly: