15 Best Dividend Stocks To Buy and Hold

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

Number of Hedge Fund Holders: 82

The Home Depot, Inc. (NYSE:HD) is a Georgia-based home improvement company that is engaged in the sale of building materials and home improvement products. The company has over 2,300 stores in the US, Canada, and Mexico. The home improvement industry is large and fragmented, with an estimated annual value of $1 trillion. Although The Home Depot is the sector’s largest player, it commands only a 15% market share. This creates substantial growth opportunities, as the company has the potential to gain a larger share from smaller competitors who struggle to match its strong brand, vast inventory, and smooth omnichannel experience.

The Home Depot, Inc. (NYSE:HD) maintained a strong financial position in fiscal year 2024, generating over $15 billion in operating cash flow during the first nine months. This robust cash flow highlights the company’s capacity to maintain its reputation as a reliable dividend payer. The company has increased its dividend payouts for 14 consecutive years, making it one of the best dividend stocks on our list. The company pays a quarterly dividend of $2.25 per share and has a dividend yield of 2.19%, as of February 4.

Carillon Tower Advisers made the following comment about HD 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.”

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 82 funds held stakes in The Home Depot, Inc. (NYSE:HD), down from 86 in the previous quarter. These stakes have a total value of roughly $7.6 billion. With over 9.4 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.