Home Depot is one of the best Big Box stories of all time going all the way back to 1978. It's consistency in increasing revenues, earnings and especially dividends is remarkable. If I could only own one stock that would prepare me for wealth and security in retirement, this is the one stock I'd buy.
Just today, Home Depot declared another increase in their dividend. The company now pays $0.69/share quarterly. That's a 16.9% increase from its prior dividend of $0.59. The company's forward yield is 2.25%. It's payable March 24 for shareholders of record March 10. It goes ex-dividend on March 8.
Just today, Home Depot declared another increase in their dividend. The company now pays $0.69/share quarterly. That's a 16.9% increase from its prior dividend of $0.59. The company's forward yield is 2.25%. It's payable March 24 for shareholders of record March 10. It goes ex-dividend on March 8.
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, kitchen and bath refacing, furnaces, and central air systems, as well as act as a contractor to provide installation services to its do-it-for-me customers through third-party installers. It primarily serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. The company also sells its products through online. As of the September 18, 2015, the company had 2,270 stores located in 50 states in the United States, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, Canada, and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
(Summary) (Company) (Chart)
| 25 February 2016 Price $126.86 1yr Target $142.05 Analysts 21 Dividend $2.76 Payout Ratio 51.68% 1yr Cap Gain 11.97% Yield 2.17% 1yr Tot Return 14.14% | EPS (ttm) $5.34 EPS next yr $6.16 EPS next 5yr 14.39% 1yr Price Support $88.64 P/E 23.76 PEG 1.65 Beta 0.92 Market Cap $160.84 Bil Revenues $86.70 Bil Earnings $6.92 Bil Profit Margin 7.98% | 1yr EarnGR 25.26% 3yr EarnGR 23.73% 5yr EarnGR 24.57% 1yr DivGR 21.95% 3yr DivGR 22.54% 5yr DivGR 17.05% Quick Ratio 0.40 Current Ratio 1.20 Debt/Equity 2.74 ROA 16.20% ROE 79.50% |
Home Depot stores average 105,000 square feet and are organized warehouse-style, stocking a large range of supplies. Home Depot's two largest stores are located in Union, New Jersey, which encompasses 217,000 square feet of space, and in Anaheim Hills, California where it encompasses 204,000 square feet.
Home Depot Canada is the Canadian unit of the Home Depot and one of Canada's top home improvement retailers. The Canadian operation consists of 180 stores and employs over 35,000 people in Canada. Home Depot Canada has stores in all ten Canadian provinces and serves territorial Nunavut, Northwest Territories, and Yukon through electronic means (Online Sales). The Canadian head office is located in Toronto.
The Home Depot operates 106 stores in Mexico and has become one of the largest retailers in Mexico since it entered the market in 2001. The Home Depot increased its presence in Mexico in 2004, with the acquisition of Home Mart, the second largest Mexican home improvement retailer.
In December 2006, the Home Depot announced its acquisition of the Chinese home improvement retailer The Home Way. The acquisition gave the Home Depot an immediate presence in China, with 12 stores in six cities.
Home Depot Canada is the Canadian unit of the Home Depot and one of Canada's top home improvement retailers. The Canadian operation consists of 180 stores and employs over 35,000 people in Canada. Home Depot Canada has stores in all ten Canadian provinces and serves territorial Nunavut, Northwest Territories, and Yukon through electronic means (Online Sales). The Canadian head office is located in Toronto.
The Home Depot operates 106 stores in Mexico and has become one of the largest retailers in Mexico since it entered the market in 2001. The Home Depot increased its presence in Mexico in 2004, with the acquisition of Home Mart, the second largest Mexican home improvement retailer.
In December 2006, the Home Depot announced its acquisition of the Chinese home improvement retailer The Home Way. The acquisition gave the Home Depot an immediate presence in China, with 12 stores in six cities.
My Perspective
Home Depot has been paying a dividend for decades but it isn't on the list of Dividend Aristocrats simply because they did not raise the dividend during the last recession. But they didn't reduce it either. And that's because management could see well past the recession to the beginning of the next expansion. Holders of the stock through that period are now being warmly rewarded for the wait with some hefty dividend increases.
While Home Depot will always be subject to the overall economy, and especially the building and remodeling industry, their future looks bright. I intend to continue to add to my position in Home Depot in the years ahead through dividend reinvestment and out right purchases.
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