It used to be hard to imagine a company that was more synonymous with DIY than Home Depot. In fact, this home improvement retailer was a popular destination for consumers right up until the housing crash hit the market. Before the downturn, it was the largest home improvement retailer in the world. Today, however, Home Depot is a global home improvement retailer with a dividend payout schedule and a positive earnings outlook. So, is it worth buying Home Depot stock? Read on to find out.
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Home Depot was a DIY store until the housing crisis
Home Depot is the largest retailer of do-it-yourself home improvement products in the world. Its orange box logo is iconic, with a cartoon carpenter with a cap down. The company has nearly 2,300 locations in the U.S. and Canada, and its sales in 1996 and 1997 reached more than $19,500 million. Home Depot plans to open 111 new stores in 1997, one store every three days, and has ambitious plans to reach 930 locations by 1999. Its main rival, Lowe's, has only 404 stores.
The company's growth has been slowing down over the last year, although the recent short-term downturn in the housing market is affecting the entire economy. Although the housing market has slowed, it is not near the peak of a decade ago, when the housing bubble burst and a collapsed economy followed. Despite this, Home Depot is poised to outperform its industry and the overall retailing industry.
In 2006, Home Depot opened 12 stores in China. The company soon realized that Chinese consumers weren't interested in DIY, which is considered a sign of poverty in developing countries. The company closed the stores in China in 2012 and lost US$160 million after-tax. The company is now focused on other markets, such as India and the Middle East. The company now has fewer stores than RONA, but it still has more stores than RONA in terms of big-box retail chains.
The company has a number of new partnerships, which could be a good strategy for the company. One such partnership is with HD Supply, a major distributor of plumbing and electrical equipment in the North American market. Although the housing market has declined, the DIY sector is still strong and is expected to remain strong. In addition, Home Depot has partnered with HD Supply, one of the largest distributors of home improvement products.
It is a home improvement retailer
When it comes to comparing home improvement stores, Lowe's and Home Depot stand out. Both companies are well-known for offering knowledgeable employees and decent customer service, but there are also some notable differences. The Spruce points out that these two retailers offer good prices, curbside pickup, and online shopping. The Spruce also notes that both offer decent return policies. Both companies have similar stock prices.
Despite a strong economy, The Home Depot has been a mainstay in the home improvement industry for more than 40 years. While it caters mostly to the DIY crowd, the retailer also offers a wide range of professional services. If you're planning to do some home improvements yourself, consider renting tools and equipment from a Home Depot rental store. You can get a good deal on tools, paint, and other materials if you buy them in bulk from a store with an extensive warehouse.
In addition to brick-and-mortar stores, Home Depot has an online presence, which serves the needs of customers worldwide. The company's online presence is strong with over 120 million visits per year. It also has a customer bill of rights, which includes a Low Price Guarantee. Home Depot will meet or beat the advertised price of a competitor if it has the product in stock. Aside from the Low Price Guarantee, Home Depot has several other great benefits for its customers. One of these benefits is the ability to order special-order items for home improvement projects, which makes it more convenient than ever to complete your project.
While Home Depot may have a reputation for being a shady company, the company has made several attempts to expand internationally. It began with Mexico and Canada, where it is now the largest home improvement retailer. Currently, it employs 35,000 people in Canada, and 11,000 in Mexico. Home Depot has also attempted to expand into Chile and Argentina, but failed in both markets. This makes it difficult to predict where the business is going.
It has a dividend payout schedule
Dividends are paid every quarter on January 1, February and May. Dividends paid on Home Depot common stock are applied toward purchases of more of the same stock by Computershare. You may elect to reinvest your dividends at any time, by calling, writing or emailing Computershare. However, you must request the reinvestment prior to the record date. Dividends received after this date will not be reinvested and will be deposited directly into your bank account.
Dividend payments will depend on the number of shares you own in the company. You can buy up to one share of Home Depot common stock with each dividend. If you are buying a smaller amount, you can invest in a home improvement store instead. Dividends from Home Depot Stock for DIY will grow faster than those of Lowe's. However, if you are investing for the long-term, it may be wise to consider other stocks in the company.
The Dividend Growth Newsletter includes Home Depot Inc. (HD) in its simulated dividend growth portfolio. Valuentum is not responsible for any errors or outcomes generated from this newsletter. As always, we make no guarantees or warranties about the accuracy of this information. Assumptions have been based on our judgment as of the date of this article and are subject to change without notice. It is advisable to seek financial advice from an investment advisor before investing in any stock.
Dividend payout ratios are important for any investor's portfolio. In fact, Home Depot stocks should be valued at a moderate premium to the market. The company has a long history of dividend growth, and their stock has a decent yield. A 2% dividend yield on a 12-month basis is an excellent place to start investing in DIY stocks. That's significantly higher than the median 13-year dividend payout schedule.
It is a growth stock
Investors who are looking for a growth stock in the DIY sector can look to Home Depot. The company emerged as a pandemic winner by enhancing its supply chain to provide the best prices and fastest delivery. The stock has a massive balance sheet, tremendous scale and amazing management. Home Depot's management expects a strong second half of the year, though. We'll look at the recent financial results.
Before buying Home Depot, make sure to analyze the company's fundamentals. Home Depot's balance sheet is strong enough to pay off its long-term debt in 17 months without dividends. That said, the company will need to pay taxes and dividends as well. That balance sheet should be stable for a long time, as it has been conservative in managing its debt. Moreover, the stock is yielding a hefty 1.6% dividend, which is higher than the S&P 500's dividend yield.
Investors may be wary of Home Depot's potential for further growth. However, the company's recent run suggests it is a solid buy and hold cornerstone for a growing portfolio. In addition to steady earnings and dividend payments, Home Depot is also a buy-and-hold bellwether for investors who are looking for a stable source of ROI. Hence, you can buy Home Depot and watch its shares grow.
Analysts recently upgraded Home Depot to a growth stock. On the heels of this news, Home Depot's second-quarter 2021 results were very strong. The company reported a 8% increase in same-store sales. Even though management had forecast a slower growth in the second half of 2021, this was still a substantial increase compared to pre-pandemic trends. While investors noted some inflation in lumber costs during fourth-quarter 2020, the stock was still growing at a modest pace. Its operating margins were up and even higher than New Constructs.
It is cheap
If you're a do-it-yourselfer, there are many ways to get Cheap Home Depot DIY stock. The store is stocked with all sorts of materials and has a customer-friendly return policy. Many retailers use codes to label products and sort them by special prices. By savvy shopping, you can get items at a low price. Whether you're a first-timer or a seasoned DIYer, there are some easy ways to save big.