Stanley Black & Decker, Inc. (SWK)

Stanley Black & Decker makes power tools under brands every builder knows.

The buyer chooses a tool by brand and by battery system: having bought one battery, they are tied to the ecosystem and add tools of the same make. That is the main source of loyalty in a category where the product itself is not hard to copy.

The company paid dearly for the pandemic demand surge: factories were pushed hard, warehouses filled, then demand fell and clearing the inventory took years. Import tariffs and relocating production were added. Demand depends on home improvement, and that on mortgage rates: when money is expensive people neither move nor renovate. The dividend has been raised for decades.