Home Depot Stock Analysis

Is Home Depot still a good dividend stock? Are they reliable medium to long term? What’s the outlook for them regarding their dividend? So, in this article, we will share a quick analysis of home depot’s dividend. Before talking about the Home Depot dividend, let you know about Home Depot.

Home Depot Stock Analysis

What does home depot do? 

Home Depot is a home appliance store. They sell various building materials, home improvement, products lawn products, they provide installation, home maintenance, tons of different stuff.

To know further about Home Depot services, you can visit the Home Depot official website at www.homedepot.com. If you go to the home depot website itself, you click on all departments. It’ll take you to the Home depot sitemap. They offer so many different things here, whether it’s, electrical, whether it’s the kitchen, whether it’s paint, I mean anything – and this is always something I knew because I’ve gone to home depot.

But looking at it now, I didn’t realize, like they offer everything you can imagine for your house. I mean, as I said, from paint to kitchen to toilets to gardening things like that.

Home Depot Dividend Analysis 

let’s take a quick look at their dividend, so I like “Seeking Alpha,” go look up the home depot, click on dividends, scroll down. You can see that their dividend yield is 2.59, that’s, not bad at all. For every one share you own of home depot, they pay out six dollars and sixty cents that’s pretty doing good.

The payout ratio is fifty-two percent, that’s, definitely healthy. We usually want a payout ratio below eighty percent. This tells us that if Home Depot makes one dollar in net income, they will pay out 52 cents of that in the dividend. The remaining 48 percent or 48 cents will then be reinvested back in the company for them to do whatever they want with that.

Their five-year growth rate is 20, which is insane, that’s good, and that’s what you want to see for a dividend growth stock, significantly, and they’ve – been growing their dividend for 12 years.

Home Depot Dividend Growth Rate

Now, let’s you know about the Home Depot dividend growth rate. The 10-year average is also 20, so that’s phenomenal. It has gone down a little bit the past year or three years, but even if it’s at 10, that’s an excellent growth rate and 2.5 percent that’s pretty doing good. If you look at the 10-year summary of home depot, they averaged around 58 returns each year. That’s just crazy.

That would be like you doubling your money every year and a half. I would say yeah, less than every two years, so that’s, really good.

Home Depot Revenues Overview

Let’s move over to the revenues, just quick, and we’ll wrap this up. So, if you look over Home Depot’s condensed consolidated earnings statements, you can see that the net sales for the three months, or let’s do it for the fiscal year, ended over here. On the right side, we can see that they had 132 billion in net sales, a 19 increase from the previous year. That’s good; that’s what you want to see the net earnings increase 14 years over year, which is good.

Final Words

Overall, if you’re looking for a good dividend, growth stock, home depot is a buy-in in that regard. Now I can’t project their future. I know with coven happening and a lot of things being shut down.

Many people were doing home improvement projects, so this is not financial advice, but I love home depot, and I think they’re going to be an excellent dividend stock. I could see them becoming a dividend aristocrat in the next 10 to 15 years.

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