Summary
- Not every stock is on sale after the recent downturn.
- Stanley Black & Decker is a Dividend Champion that has raised their dividend 51 years in a row.
- Stanley Black & Decker is a reliable dividend growth stock but is overvalued.
This recent stock market downtown has created a lot of opportunities for the average dividend investor. Yields have increased, prices have gone down, and many value deals have been created for the savvy bargain hunter. Unless you think the sky is falling and doomsday is around the corner, it is an exciting time to be a stock investor. Although there are many stocks that are on sale, there are others that are not worth buying at this time, even though their price went down significantly.
One Dividend Champion that comes to mind is Stanley Black & Decker (SWK). SWK has an elite dividend growth history. It is a household name where almost every American has heard of the company or owns one of their products. Its volume is sitting around 2.21 million which tells me many investors are buying, but I would not.
In this article, I want to explore the financials of SWK to help explain why it is a stock to avoid buying at this time.
