13 Best American Dividend Stocks to Buy According to Analysts

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

Upside Potential as of April 20: 23.2%

The Home Depot, Inc. (NYSE:HD) is an American home improvement company that offers tools, appliances, construction products, and related services. In the fourth quarter of 2024, The Home Depot, Inc. (NYSE:HD) posted revenue of $39.7 billion, reflecting a 14% increase compared to the same period the previous year. For fiscal 2025, the company expects total sales to grow by about 2.8%, with comparable sales projected to rise roughly 1% over the equivalent 52-week timeframe. Expansion efforts include plans to open around 13 new stores, while gross margins are anticipated to be approximately 33.4%.

The Home Depot, Inc. (NYSE:HD) brand carries significant value in a fragmented market. Consumers have grown to rely on the company thanks to its extensive product selection, strong customer service, and broad distribution network. The stock has surged by nearly 6% in the past 12 months.

By the end of the quarter, The Home Depot, Inc. (NYSE:HD) held more than $1.65 billion in cash and cash equivalents. Over fiscal year 2024, the company generated nearly $20 billion in operating cash flow, underscoring its strong financial footing. This solid performance has enabled the company to maintain a streak of 152 consecutive quarters of dividend payments. On February 25, it announced a 2.2% dividend increase to $2.30 per share, marking its 15th straight year of dividend growth. As of April 20, the stock has a dividend yield of 2.59%.