5 Undervalued Dividend Kings To Buy In 2022

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

Dividend Yield as of February 24: 2.02%

Number of Hedge Fund Holders: 42

Number of Years of Consecutive Dividend Increases: 54

P/E Ratio: 17.50

Stanley Black & Decker, Inc. (NYSE:SWK) is a Connecticut-based manufacturer of industrial tools, hardware, security, and medical equipment. Stanley Black & Decker, Inc. (NYSE:SWK) has raised its dividends consistently for 54 years, offering a yield of 2.02%. 

On February 16, Stanley Black & Decker, Inc. (NYSE:SWK) declared a $0.79 per share quarterly dividend, in line with previous. The dividend is payable on March 22, to shareholders of record on March 8. Stanley Black & Decker, Inc. (NYSE:SWK) also beat market consensus on earnings, with an EPS of $2.14. 

On February 23, Stanley Black & Decker, Inc. (NYSE:SWK) priced its offering of $500 million aggregate principal amount of 2.30% senior notes due 2025 at 99.865% of par and $500 million aggregate principal amount of 3.0% Senior Notes due 2032. 

Citi analyst Eric Lau resumed coverage of Stanley Black & Decker, Inc. (NYSE:SWK) on February 3 with a Buy rating and a $215 price target after the Q4 results. Despite global supply chain constraints, the company’s end-demand remained solid, the analyst told investors in a research note.

Pzena Investment Management held the largest stake in Stanley Black & Decker, Inc. (NYSE:SWK) in Q4 2021, with over 1 million shares worth $190.7 million. Overall, 42 hedge funds were long Stanley Black & Decker, Inc. (NYSE:SWK) in the fourth quarter. 

Here is what Saturna Capital Sextant Funds has to say about Stanley Black & Decker, Inc. (NYSE:SWK) in its Q3 2021 investor letter:

“Stanley Black & Decker, Inc. (NYSE:SWK) performed well through the first part of the year but struggled over the summer. China accounts for much of its production, and their zero-tolerance approach to pandemic safety measures has led to disruption, compounded by shipping difficulties and rising materials expenses. We still believe one outcome of the pandemic will be a buoyant home improvement market, given that one never knows when the next pandemic lockdown may occur.”