Why I Just Bought Stanley Black & Decker
Tool maker Stanley Black & Decker (NYSE: SWK) let investors down in a big way, with adjusted earnings guidance for 2022 having been reduced by roughly 50% since the start of the year. The stock has plunged by around 60% year to date. And given the volatile state of the broader market, there could be more downside to come. Here's why I bought the stock anyway.
I'm a dividend investor with a bias toward value stocks. One of the tools I use to figure out if a stock is historically cheap is relative dividend yield. Given the massive stock drop in Stanley Black & Decker's shares, its yield is up to 4.2%. That's toward the high side of its historical range, suggesting the shares are, indeed, historically cheap right now.
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Source Fool.com
