Father's Day Investing: 3 Stocks Built for Long-Term Returns

Key Points

• Stanley Black & Decker combines recovery potential with 58 consecutive years of dividend growth.
• Home Depot may benefit from lower rates, improving housing activity, and a growing dividend.
• YETI's brand strength and aggressive share buybacks could create long-term shareholder value.

This year, Father’s Day comes at a time when it appears that the long-awaited sector rotation is finally here. But the story may get better. Investors are always looking forward, and the outlook for the economy is starting to look much stronger for the back half of the year.

That may mean we’ll see rotation into stocks and sectors that have been overlooked in the artificial intelligence trade. For gift ideas that go beyond a single day on the calendar, here are three stocks that are great ideas for dads who also like to invest.

A Recovery Story Still in Progress

Infrastructure means hammers and nails, as well as servers and semiconductors. That’s been showing up in the performance of Stanley Black & Decker NYSE: SWK. The stock is up 15% in 2026 as of this writing. That’s evidence of the recovery in industrial stocks, which has been one of the top sectors outside of technology.

SWK is within about 2% of its consensus price target, but there may still be more upside ahead. The latest quarter showed that the company’s performance was uneven depending on the category. For example, organic revenue in its Tools & Outdoor business unit, home of the CRAFTSMAN brand, was 1% lower. 

To that end, Stanley Black & Decker is leaning into Father’s Day and the CRAFTSMAN brand. Its Longest Day Build Hub features DIY experts sharing outdoor projects to help create a more functional, family-friendly outdoor space. It also offers special offers on CRAFTSMAN products.

The larger catalyst may be the company's intentional efforts to reduce its supply chain's exposure to China. Analysts forecast earnings growth of about 15% in the next 12 months. That may not be fully priced into the stock, which has delivered a negative total return of 50% in the last five years.

That’s despite the company’s dividend. Stanley Black & Decker is a dividend king that has increased its dividend for 58 consecutive years.

The Housing Coil Keeps Tightening

Many DIY Dads are frequent visitors to Home Depot NYSE: HD. But that hasn’t shown up in the company’s stock performance. Home Depot has struggled amid a tight housing market, as consumers put off major renovations. In the last five years, investors have received a total return of around 8%. That’s far below the broader market and the company’s own history.

But HD is showing signs of recovery. The stock is still down slightly in 2026, but it is up over 10% over the prior 30 days. Analysts confirm that sentiment with a consensus price target of $371.71, implying over 10% upside.

Some of that optimism may be fueled by hopes of interest rate cuts that could unlock a frozen housing market. But it could also reflect the idea that the consumer remains resilient, which could show up in areas like paint and hardware. Lower fuel prices, which could lower commodity prices, may also fuel growth.

Plus, despite the stock’s uneven five-year performance, the dividend has continued to grow. As of this writing, Home Depot pays out $9.32 per share on an annual basis, has increased the dividend for 16 consecutive years, and has a history of paying a dividend that goes back 40 years.

A Premium Brand Playing the Long Game

YETI Holdings NYSE: YETI is an example of the continued demand in the premium market. But also, even premium brands are having a difficult time passing along price hikes. The company’s Q1 2026 earnings report showed a continuation of the trend towards year-over-year (YOY) revenue growth.

That’s not the sign of a brand with declining demand. And just in time for Father’s Day and the Fourth of July, the company has restocked its Fire Pit Grill Kit, which is one of the brand’s top sellers.

But that YOY growth isn’t showing up on the bottom line. YETI beat estimates for 17 cents of adjusted earnings per share (EPS) by 9 cents. That better-than-expected result, however, was still 16% lower on a YOY basis. The company’s margin pressure is due to tariffs, which it believes will soften in the second half of 2026 as YOY comparisons normalize.

Unlike the other two names on this list, YETI doesn’t pay a dividend. That’s a factor to weigh, especially for a stock that’s delivered a negative total return of over 45% in the last five years. However, YETI isn’t completely dismissing shareholder returns. The company recently expanded its share repurchase program, which still has $500 million available as of May 14, 2026. That’s one indication that management believes the stock may be undervalued.