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We just covered the 14 Best Defensive Stocks to Invest In Now and Stanley Black & Decker, Inc. (NYSE:SWK) ranks 9th on this list.
For defensive investors, the most compelling case for Stanley Black & Decker, Inc. (NYSE:SWK) is its unmatched payout reliability. The firm has paid a dividend for 149 consecutive years and has increased that dividend for 58 consecutive years. The stock offers a forward dividend yield of approximately 4.4%–4.6%. In a year where the S&P 500 has struggled, this high yield provides a substantial income floor for shareholders. Another major catalyst is the company’s move to clean up its balance sheet, which has lowered its risk profile. In early 2026, SWK finalized the $1.8 billion sale of its Consolidated Aerospace Manufacturing (CAM) business. The proceeds are being used almost exclusively to pay down debt, moving the company toward its target of a 2.0x leverage ratio.
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Stanley Black & Decker, Inc. (NYSE:SWK) is currently in the final stages of a $2 billion cost-reduction program. By consolidating its manufacturing footprint and simplifying its product lines, from complex to standardized, SWK has boosted its adjusted gross margins to 33.2%, up significantly from late 2024. The firm benefits when the economy cools. When high interest rates prevent people from buying new homes, they invest in improving their current ones. This drives demand for Stanley and DEWALT tools for DIY repairs and professional maintenance. DEWALT, Stanley, and Craftsman are non-negotiable brands for tradespeople. This brand loyalty gives the company pricing power, allowing it to raise prices, up 4% in the last quarter, to offset inflationary pressures without losing its core customer base.
While we acknowledge the potential of SWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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