My Top Industrial Stock to Buy in October
There are variations on the theme here, but one of the most provocative sayings on Wall Street is that you should buy when there's blood on the Street. That's definitely the case today with toolmaker Stanley Black & Decker (NYSE: SWK), a stock that has declined by more than 50% this year alone. But here's the interesting thing: That drop has pushed the dividend yield to a historically high 4.1%, suggesting that this Dividend King is cheap. Here are some key facts to think about before you let fear stop you from buying the stock.
This might sound simple, but you can't build things without tools. So the products Stanley Black & Decker makes are necessity items. This is no small matter. Indeed, although Stanley Black & Decker is an industrial stock, the entire consumer staples space is so attractive because people need things like toothpaste, deodorant, and soap on a regular basis. To be fair, industrial tools last a long time so the comparison to a consumer products company isn't perfect, but tools do wear out and need to be replaced regularly. And then there are consumables, like saw blades, that are just as frequently changed as, say, razor blades.
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Source Fool.com
