The Building-Hand Tools Group Is Quickly Rising

Building-related groups rank high in IBD's rankings of 197 industry groups amid a recovery in the housing and construction markets. The Building-Hand Tools group is quickly rising and is home to dividend stalwart Stanley Black & Decker (SWK). With a market cap of more than $13 billion, Decker is the biggest firm in the hand tools group. The company is the result of the 2010 merger between Stanley Works and Black & Decker. Decker is also a member of the S&P 500 Dividend Aristocrats index, which tracks the performance of large caps with an extremely long record of dividends. The company has paid dividends for 135 straight years, which according to its website is unparalleled by any industrial firm on the New York Stock Exchange. Decker has increased its shareholder payout each year since 1968. It last hiked its dividend just over a year ago by 21% to the current quarterly rate of 41 cents a share. In late January, the company said it's reviewing a dividend hike for 2012. On an annual basis, Decker pays $1.64 a share. This works out to a current yield of about 2.1%. It has the third-highest yield among the five dividend-paying stocks in the Building-Hand Tools group. Decker owns a Composite Rating of 92, which is the highest among its peers. It has a three-year Earnings Stability Factor of 14, which indicates a steady stream of profits. The scale runs from zero (most stable) to 99 (most volatile). Acquisitions have helped the company grow. It's still reaping the benefits of its merger with Black & Decker. And last year, the company bought Swedish security services firm Niscayah. While it's known for its hand tools and power tools, security solutions accounted for 25% of total revenue in 2011. In January, Decker beat views with a 27% rise in Q4 earnings. Sales grew 17% to $2.79 billion — the best in three quarters. It wrapped up 2011 with a 27% rise in profit and a 24% gain in revenue. The EPS Rating is an 81, and the SMR grade is B. Decker is in buying range after rebounding off its 10-week moving average. The stock climbed above a 73.39 buy point from a cup-with-handle pattern in early February. Source: investors.com