In a recent article, Lanny broke down what a dividend is and highlighted what is so great about receiving a dividend. When I first started learning about dividend investing, there were a lot of articles and emphasis on assessing a company’s dividend payout ratio. So I thought I would take some time today, provide a definition for the payout ratio, show how to calculate the metric, and some other details/tricks of the trade that we have picked up over the years as we continue to invest in dividend growth stocks.
I’m always on the hunt for a new, outstanding dividend growth stock to add to my portfolio or add to my next watch list. To start this search, I pulled up a handy listing of Dividend Aristocrats and began digging away. After some research, there was one stock that caught my eye and made my ears perk. So you know what, I decided to perform a stock analysis on the company and see how well the company fit my portfolio. That company is…Stanley Black & Decker, Inc. (SWK). Let’s see how well the company performed when put through the Dividend Diplomats Stock Screener and a few other metrics!