8 Best American Dividend Stocks To Buy Right Now

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

Number of Hedge Fund Holders: 82

The Home Depot, Inc. (NYSE:HD) is an American multinational home improvement retail company that sells appliances, tools, construction equipment, and related products. The company faced challenges this year due to increasing macroeconomic uncertainty, which dampened overall consumer demand and led to reduced spending on home improvement projects. In its latest quarter, it reported a 1.3% decline in same-store sales compared to the previous year—an unfavorable outcome for any retail-focused business. Management anticipates this downward trend will persist for the remainder of the fiscal year. That said, the stock has surged by over 22.4% 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.”

In the third quarter of 2024, The Home Depot, Inc. (NYSE:HD) reported revenue of $40.22 billion, which showed a 6.6% growth from the same period last year. The company’s operating income came in at $5.4 billion and its operating margin was 13.5%. It experienced improved customer interest in seasonal products and various outdoor projects, along with additional sales driven by demand related to hurricane activity.

In the first nine months of the year, The Home Depot, Inc. (NYSE:HD) generated over $15 billion in operating cash flow. The company’s strong cash position makes it a generous dividend payer. The company currently pays a quarterly dividend of $2.25 per share and has a dividend yield of 2.13%, as of December 10. It is one of the best dividend stocks on our list as the company has raised its payouts for 14 consecutive years.

According to Insider Monkey’s database of Q3 2024, 82 hedge funds owned stakes in The Home Depot, Inc. (NYSE:HD), down from 86 in the preceding quarter. These stakes are worth nearly $7.6 billion in total. Ken Fisher’s Fisher Asset Management owned the largest stake in the company.