Stanley Black & Decker's (NYSE: SWK) current adjusted earnings guidance for 2022 suggests a year-over-year profit decline of as much as 50%. That's terrible and helps explain why the reliable dividend payer's stock has fallen by nearly 60% over the past year. Here's why contrarian investors should see this as an attractive opportunity.

There are many ways to value a company, but one often overlooked option is to examine a stock's dividend yield relative to historic trends. Dividends tend to be fairly stable over time, so in some ways it is a more consistent valuation tool than earnings, which can be highly variable from year to year.

In this case, Stanley Black & Decker's yield is roughly 4%. That's the highest level since the 2007 to 2009 financial crisis, which is often called the Great Recession. 

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Source Fool.com