The Home Depot, Inc. (NYSE:HD) Increases Dividend to $2.33 Per Share

The Home Depot, Inc. (NYSE:HD) announced a quarterly dividend on Tuesday, February 24th. Stockholders of record on Thursday, March 12th will be given a dividend of 2.33 per share by the home improvement retailer on Thursday, March 26th. This represents a c) annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Thursday, March 12th. This is a 1.3% increase from Home Depot’s previous quarterly dividend of $2.30.

Home Depot has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 16 years. Home Depot has a dividend payout ratio of 56.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Home Depot to earn $15.60 per share next year, which means the company should continue to be able to cover its $9.20 annual dividend with an expected future payout ratio of 59.0%.

Home Depot Stock Down 3.3%

Shares of HD stock traded down $12.52 on Wednesday, reaching $371.96. 1,072,967 shares of the stock were exchanged, compared to its average volume of 4,228,457. The company has a market capitalization of $370.29 billion, a price-to-earnings ratio of 25.37, a PEG ratio of 13.49 and a beta of 1.08. The business’s 50 day moving average price is $370.27 and its 200 day moving average price is $380.12. The company has a current ratio of 1.05, a quick ratio of 0.29 and a debt-to-equity ratio of 3.82. Home Depot has a twelve month low of $326.31 and a twelve month high of $426.75.

Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.52 by $0.20. The company had revenue of $38.20 billion during the quarter, compared to the consensus estimate of $38.01 billion. Home Depot had a return on equity of 160.74% and a net margin of 8.77%.Home Depot’s revenue for the quarter was down 3.8% on a year-over-year basis. During the same period in the previous year, the business earned $3.13 EPS. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. As a group, sell-side analysts expect that Home Depot will post 15.13 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Angie Brown sold 1,946 shares of the business’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $357.63, for a total value of $695,947.98. Following the transaction, the executive vice president owned 3,941 shares in the company, valued at $1,409,419.83. The trade was a 33.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of the company’s stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $348.52, for a total value of $1,000,949.44. Following the sale, the executive vice president directly owned 13,196 shares of the company’s stock, valued at approximately $4,599,069.92. This represents a 17.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,963 shares of company stock valued at $1,748,845 over the last quarter. 0.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Home Depot

A number of large investors have recently modified their holdings of HD. Brighton Jones LLC lifted its stake in shares of Home Depot by 36.5% in the fourth quarter. Brighton Jones LLC now owns 26,918 shares of the home improvement retailer’s stock valued at $10,471,000 after purchasing an additional 7,203 shares during the period. Sivia Capital Partners LLC increased its holdings in Home Depot by 7.1% in the second quarter. Sivia Capital Partners LLC now owns 2,598 shares of the home improvement retailer’s stock valued at $952,000 after buying an additional 173 shares in the last quarter. Ignite Planners LLC increased its holdings in Home Depot by 0.7% in the second quarter. Ignite Planners LLC now owns 6,526 shares of the home improvement retailer’s stock valued at $2,346,000 after buying an additional 47 shares in the last quarter. Croban acquired a new stake in shares of Home Depot during the 2nd quarter valued at approximately $416,000. Finally, Schnieders Capital Management LLC. boosted its stake in shares of Home Depot by 14.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 11,587 shares of the home improvement retailer’s stock worth $4,248,000 after acquiring an additional 1,433 shares in the last quarter. 70.86% of the stock is owned by hedge funds and other institutional investors.

About Home Depot

The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.