11 Best Retail Dividend Stocks to Buy

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

Number of Hedge Fund Holders: 88

The Home Depot, Inc. (NYSE:HD) ranks third on our list of the best dividend stocks in the retail sector. The American home improvement company offers tools, appliances, construction products, and related services. It caters to both DIY enthusiasts and professionals. The company operates through physical stores and online channels. On March 19, the company became the sole big-box retailer for KILZ primer products in the US and Puerto Rico, further solidifying its collaboration with Behr Paint. This initiative enhances product availability for professionals, ensuring easier access to reliable primers in stores, online, and via delivery services.

In the fourth quarter of 2024, The Home Depot, Inc. (NYSE:HD) reported revenue of $39.7 billion, which saw a 14% growth from the same period last year. For the fiscal year 2025, the company forecasts a total sales increase of approximately 2.8%, with comparable sales expected to rise by around 1% over the same 52-week period. Additionally, plans are in place to expand its presence with roughly 13 new store openings, while the gross margin is projected to be around 33.4%.

The Home Depot, Inc. (NYSE:HD) closed the quarter with more than $1.65 billion in cash and cash equivalents. Throughout FY24, the company generated nearly $20 billion in operating cash flow, highlighting its strong financial position. This stability has allowed it to sustain an uninterrupted streak of dividend payments for 152 consecutive quarters. On February 25, the company raised its dividend by 2.2% to $2.30 per share, marking its 15th consecutive year of dividend growth. The stock supports a dividend yield of 2.57%, as of March 29.