Stanley Black & Decker Has a Plan to Offset Tariffs

Stanley Black & Decker Inc. pays you 4.5% while maintaining its market dominance amidst an aggressive cost-cutting program – the shares are still cheap too.

This compelling turnaround opportunity is anchored by a solid portfolio of professional-grade brands. Stanley Black & Decker has delivered nine consecutive quarters of revenue growth even in challenging market conditions. What’s more, the company’s $2.0 billion cost reduction program has transformed its operational efficiency while maintaining market leadership positions.

This is a big part of how the company has successfully converted from losses to profitability while maintaining its 58-year dividend growth streak, now yielding 4.5%.

The stock offers significant upside potential as the company completes its transformation program and benefits from eventual market recovery.

STANLEY BLACK & DECKER INC. (New York symbol SWK; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools. In addition to brands Stanley and Black & Decker, it also offers top-selling brands DeWalt, Lenox, Irwin and Craftsman.

Revenue declined 2.0% in the second quarter of 2025, to $3.95 billion from $4.02 billion a year earlier. That was partly due to tariff-related shipment disruptions. Excluding one-time items, Stanley earned $1.08 a share (or a total of $163.1 million), down 0.9% from $1.09 a share (or $164.5 million).

Stanley’s cost-cutting program and supply chain shifts will help offset tariffs

The stock is down since the start of the year as new U.S. tariffs on China would hurt its profits. It currently gets around 15% of its products from China, down from 40% eight years ago.

Tariffs and increasing economic uncertainty could also slow demand for new tools by industrial customers like homebuilders, as well as individual consumers.

Stanley plans to shift more of its production away from China, which should help offset the tariff impact.

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Meantime, the company continues to cut its costs by closing factories and shrinking the number of products it makes. The plan should cut $2.0 billion from its annual costs in 2025.

In response to new U.S. tariffs, Stanley is adjusting its supply chains and raising selling prices. As well, savings from a restructuring plan, which includes closing factories and shrinking the number of products it makes, could lift its forecast earnings from $5.39 a share in 2025 to $6.60 in 2026. The stock trades at 11.2 times that 2026 estimate.

Also, with the September 2025 payment, Stanley increased your quarterly dividend by 1.2%, to $0.83 a share from $0.82. The new annual rate of $3.32 yields 4.5%. The company has now raised the dividend each year for the past 58 years.

Recommendation in Dividend Advisor: Stanley Black & Decker Inc. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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