Walmart Is a Rock-Solid Dividend King, but So Is This High-Yield Dividend Stock That’s Down 11% in the Past 3 Months

In the midst of the buzz surrounding artificial intelligence (AI) and megacap growth stocks, it’s important not to overlook the steady gains of traditional stalwarts like Walmart (NYSE: WMT). Surging nearly 30% year to date, Walmart has outperformed tech giants like Amazon, Microsoft, and Apple. With over 50 consecutive years of dividend increases, Walmart has earned its title as a Dividend King.

Meanwhile, Stanley Black & Decker (NYSE: SWK), another Dividend King, has faced challenges in recent years, resulting in a stock price decline of over 10% in the last three months and 57% over the last three years. However, the company has been implementing cost-cutting measures and is expected to return to profitability in the near future.

Despite a net loss in 2023, Stanley Black & Decker is projected to achieve $4 in earnings per share (EPS) in 2024 and $5.48 in 2025. This would give the company a low price-to-earnings (P/E) ratio of just 15.5, making it an attractive investment opportunity for patient investors.

While the company has faced challenges such as supply chain disruptions and interest rate fluctuations, its focus on cost-cutting and returning to profitability bodes well for its future prospects. Investors should consider the long-term potential of Stanley Black & Decker and its ability to grow and improve its financial position.

In conclusion, despite recent struggles, Stanley Black & Decker has the potential to rebound and deliver strong returns for investors in the coming years. Patient investors may find the current valuation and yield of the stock too attractive to ignore, while others may prefer to wait and see how the company performs in the near future.