The Home Depot, Inc. (HD): After a Huge Dividend Increase, is This Retailer a Buy?

Investors seem to be increasingly optimistic about the recovery in the American housing market, a critical piece of Home Depot’s business.  In its earnings announcement, Home Depot made a point to acknowledge it is seeing gaining momentum in Florida, California and Arizona — among the states hit hardest by the U.S.’s housing-market downturn.  As a result, it’s entirely reasonable to believe that Home Depot deserves its current above-market valuation due to solid future growth expectations.

Home Depot is a highly profitable stock that is sure to benefit handsomely should the economic (and particularly housing) recovery in the United States gains further traction.  Home Depot is the largest and most well-known home improvement retailer in the world.  If you’re a die-hard dividend investor only interested in stocks commanding yields several percentage points better than the yield on the S&P 500, Home Depot may not be for you.  But if you’re an investor interested in a mix of decent income and exposure to the global economic recovery story, Home Depot is worthy of your further consideration.

The article After a Huge Dividend Increase, is This Retailer a Buy? originally appeared on Fool.com.

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