10 Dividend Stocks For Steady Income

7. The Home Depot, Inc. (NYSE:HD)

Dividend Yield as of December 20: 2.32%

5-Year Share Price Return: 75.2%

The Home Depot, Inc. (NYSE:HD) ranks seventh on our list of the best stocks with steady dividends. The American multinational home improvement retail company sells appliances, tools, construction equipment, and related products. In the third quarter of 2024, the company reported $40.22 billion in revenue, reflecting a 6.6% increase compared to the same quarter the previous year. The company recorded an operating income of $5.4 billion with an operating margin of 13.5%. Growth was supported by stronger customer interest in seasonal items and outdoor projects, as well as increased sales driven by hurricane-related demand.

This year, The Home Depot, Inc. (NYSE:HD) encountered difficulties stemming from growing macroeconomic uncertainty, which weakened consumer demand and resulted in lower spending on home improvement projects. In the most recent quarter, same-store sales dropped by 1.3% compared to the previous year—an unfavorable result for a retail-driven business. Management expects this declining trend to continue through the rest of the fiscal year. That said, the stock has surged by over 13.5% since the start of 2024.

This was also highlighted by Carillon Tower Advisers in its Q3 2024 investor letter. Here is what the firm has to say:

“While Home Depot, Inc.’s (NYSE:HD) recent reported earnings were somewhat tepid, the market seems to be pricing in an inversion of the company’s sales, driven by lower interest rates. Home Depot reported its seventh consecutive quarter of same-store sales declines, giving back substantial gains that it enjoyed during the pandemic. High mortgage rates have also put a damper on existing home sales. People typically spend the most on home repairs and improvements in years when they buy or sell houses, often conducting both transactions in the same year.”

During the first nine months of the year, The Home Depot, Inc. (NYSE:HD) generated more than $15 billion in operating cash flow. This solid financial position enables the company to maintain its status as a generous dividend payer. The company has been rewarding shareholders with growing payouts for the past 14 consecutive years. It currently offers a quarterly dividend of $2.25 per share and has a dividend yield of 2.32%, as of December 20.

Insider Monkey’s database of Q3 2024 indicated that 82 hedge funds held stakes in The Home Depot, Inc. (NYSE:HD), compared with 86 in the previous quarter. These stakes are collectively valued at nearly $7.6 billion.