HD has an 11-year track record of Dividend Growth
The Ex-dividend date for the new dividend is March 11th. The current yield is about 2.2% and the payout ratio is about 54%. Revenue is also growing, so that supports growing earnings and growing dividends. Q4 GAAP EPS of $2.28 beat estimates by $0.17.
When you visit a Home Depot retail store, you might miss how much they really do for the consumer. Yes, The Home Depot stores sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers.
But HD also offers installation programs that include flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows; and professional installation in various categories sold through its stores and in-home sales programs, as well as acts as a contractor to provide installation services to its do-it-for-me customers through third-party installers.
In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products online. As of February 3, 2019, the company operated 2,287 stores in the United States, including the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; Canada; and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
A Seeking Alpha screen tells me everything I need to know about the Home Depot’s dividend quality and sustainability. The numbers look very good. We own 75 shares of HD.
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