Stanley plans to add to your 40% return

Article Excerpt

STANLEY BLACK & DECKER INC. $165 is still a buy after the 40% gain for investors this year. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 152.0 million; Market cap: $25.1 billion; P/S ratio: 1.8; Divd. yield: 1.7%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools for consumers. In addition to Stanley and Black & Decker, its top-selling brands include DeWalt, Craftsman and Irwin. That 40% jump for our subscribers was mainly due the a string of successful acquisitions, which have spurred its growth. While relying on acquisitions adds risk, Stanley typically targets smaller firms with products that complement its existing operations. As well, savings from eliminating overlapping operations continue to let Stanley reward its shareholders. With the September 2019 payment, it raised its quarterly dividend by 4.5%. Investors now receive $0.69 a share instead of $0.66. The new annual rate of $2.76 yields 1.7%. While the yield may seem low, it’s…