Home Depot said on February 21, 2023 that its board of directors declared a regular quarterly dividend of $2.09 per share ($8.36 annualized). Shareholders of record as of March 9, 2023 will receive the payment on March 23, 2023. Previously, the company paid $1.90 per share.
At the current share price of $295.50 / share, the stock’s dividend yield is 2.83%. Looking back five years and taking a sample every week, the average dividend yield has been 2.32%, the lowest has been 1.59%, and the highest has been 3.69%. The standard deviation of yields is 0.32 (n=237).
The current dividend yield is 1.59 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.50. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.54%, demonstrating that it has increased its dividend over time.
Analyst Price Forecast Suggests 17.63% Upside
As of February 22, 2023, the average one-year price target for Home Depot is $347.60. The forecasts range from a low of $260.58 to a high of $493.50. The average price target represents an increase of 17.63% from its latest reported closing price of $295.50.
The projected annual revenue for Home Depot is $162,352MM, an increase of 3.14%. The projected annual EPS is $17.18, an increase of 2.62%.
What is the Fund Sentiment?
There are 4737 funds or institutions reporting positions in Home Depot. This is an increase of 135 owner(s) or 2.93% in the last quarter. Average portfolio weight of all funds dedicated to HD is 0.84%, a decrease of 0.51%. Total shares owned by institutions increased in the last three months by 2.14% to 828,035K shares. The put/call ratio of HD is 1.49, indicating a bearish outlook.
What are large shareholders doing?
Capital World Investors holds 39,172K shares representing 3.84% ownership of the company. In it’s prior filing, the firm reported owning 40,060K shares, representing a decrease of 2.27%. The firm increased its portfolio allocation in HD by 6.27% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 30,540K shares representing 3.00% ownership of the company. In it’s prior filing, the firm reported owning 30,265K shares, representing an increase of 0.90%. The firm increased its portfolio allocation in HD by 5.83% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 23,298K shares representing 2.29% ownership of the company. In it’s prior filing, the firm reported owning 22,872K shares, representing an increase of 1.83%. The firm increased its portfolio allocation in HD by 5.97% over the last quarter.
Geode Capital Management holds 19,008K shares representing 1.87% ownership of the company. In it’s prior filing, the firm reported owning 18,423K shares, representing an increase of 3.08%. The firm increased its portfolio allocation in HD by 9.19% over the last quarter.
Bank Of America holds 15,340K shares representing 1.51% ownership of the company. In it’s prior filing, the firm reported owning 14,964K shares, representing an increase of 2.45%. The firm decreased its portfolio allocation in HD by 99.89% over the last quarter.
Home Depot Background Information
(This description is provided by the company.)
The Home Depot is the world’s largest home improvement specialty retailer, with 2,296 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2019, The Home Depot had sales of $110.2 billion and earnings of $11.2 billion. The company employs more than 400,000 associates. The Home Depot’s stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor’s 500 index.
This article originally appeared on Fintel
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