12 Best Income Stocks to Buy Now

9. Stanley Black & Decker, Inc. (NYSE:SWK)

Number of Hedge Fund Holders: 37

Dividend Yield as of December 28: 4.40%

Stanley Black & Decker, Inc. (NYSE:SWK) is one of the best dividend stocks to invest in.

On December 23, Baird analyst Timothy Wojs raised the firm’s price target on Stanley Black & Decker, Inc. (NYSE:SWK) to $85 from $75 and kept a Neutral rating on the shares. The update followed the company’s announcement to sell its Consolidated Aerospace Manufacturing division, which prompted Baird to revise its model.

On December 22, Stanley Black & Decker, Inc. (NYSE:SWK) said it had entered into a definitive agreement to sell its Consolidated Aerospace Manufacturing business to Howmet Aerospace for $1.8 billion in cash. CAM supplies critical fasteners, fittings, and other engineered components used across the aerospace and defense industries.

Chris Nelson, Stanley Black & Decker’s President & CEO, made the following comment:

“Divesting CAM reflects our ongoing dedication to enhancing shareholder value and focusing on growing our biggest brands and businesses. The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of 2.5 times net debt to adjusted EBITDA. After achieving this critical financial goal, we will have greater flexibility to pursue additional value-creation opportunities through a more agile capital allocation strategy. I am confident that CAM, along with its talented team, will thrive as part of Howmet Aerospace. I would also like to express my appreciation to all CAM employees for their exceptional dedication and remarkable contributions, which have been instrumental to CAM’s success.”

The business is expected to generate $405 million to $415 million in fiscal year 2025. It produces essential components for aircraft and defense applications, including fasteners, fittings, and other specialized parts that require tight tolerances and long qualification cycles.

The deal fits squarely with Howmet’s focus. The company is a major player in aerospace and defense, with deep expertise in engine components and fastening systems. CAM complements that portfolio without much overlap, which helps explain the strategic appeal.

Stanley Black & Decker, Inc. (NYSE:SWK) is a global leader in Tools and Outdoor products, with manufacturing operations spanning multiple regions worldwide.