If you want a stable dividend stock to own, looking at Dividend Kings can be an excellent starting point. These are businesses that have been increasing their dividend payments for at least 50 years in a row. They're in the S&P 500 and are among the safest investments you can own.
One stock that falls into that list that has been declining recently is Stanley Black & Decker (NYSE:SWK). The company, which is known for its tools, security, and industrial products, was thriving a year ago. However, amid inflation and people and businesses cutting back on expenses, it has had a tougher time this year.
It released its earnings last week and its income of $87.6 million was down 81% from the $459.5 million it reported a year ago. However, this significant drop in profitability also includes a non-cash asset impairment charge of $168.4 million. Its adjusted earnings per share totaled $1.77 but was nowhere near analyst expectations of $2.13.
Unsurprisingly, the stock tanked, falling to below $100 and a 52-week low of $93.56. Although it temporarily dipped lower during the 2020 market crash, the last time it was at these levels for a prolonged period was in early 2016. Despite the headwinds, the company announced on July 20, a week before the earnings release, that it would be hiking its quarterly dividend payments to $0.80 per share, marking its 55th consecutive annual increase.
As of now, there's still no reason to be concerned about the dividend. And Stanley's strong brands should allow the stock to recover in the long term.
