Stanley Black & Decker (NYSE: SWK) is not a particularly rewarding stock today, with the shares down 60% from their high-water mark in 2021. And 2023 is not expected to be a particularly good year for earnings.

But the company has a long history of success behind it, places a high value on rewarding investors with dividends, and is willing to accept some short-term pain so it can position itself for long-term success. Investors with a contrarian bent will probably like the story.

Ever hit your thumb with a hammer? It hurts a lot. That's probably a good comparison point for what's been going on with Stanley Black & Decker's earnings. In 2020, the company's adjusted earnings totaled $10.48 per share, a record. That fell to $4.62 per share in 2022. In 2023, it could fall all the way to zero although the top side of guidance could be as "high" as $2.00 per share. With that backdrop, it's pretty easy to see why investors would be so downbeat on the stock.

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Source Fool.com