Home depot (Nyse: HD) It was an amazing stock for investors who bought and held in the long run. Although not growing inventory, it surpassed the market with a wide margin.
Several factors contribute to his success, which is a clear example of the investment strategy “The winners continue to win”. He also has another secret: dividend. In fact, the Home Depot dividend added an incredible value of the shares as a whole.
And it’s more than a passive income; If you have never taken a dividend as a passive income and instead reinstructed in the growth of your position, you would have a lot more money, depending on when you invested. If you had invested $ 1000 20 years ago, you would almost double your dividend gain.
The story is not over, and Home depot can continue to grow and reward investors. But can that set you up for a living?
Home Depot is the largest chain to improve the world in the world, with 2,300 stores in North America. Generally, the improvement of the house is usually an increasing industry, and as a leader in space, Home Depot benefits from trends of organic growth.
But in the last few years, he has largely invested in his stores, digital channels and assortment of products, and has set himself strong despite the inflationary climate. One maneuver invests in its logistical network to make faster, especially large, bulky objects. He also made several acquisitions, recently SRS distribution, which targets his professional customers. This extends its addressable market and opens up new growth options.
Also still opens new stores, though I slow pace. He opened 12 new stores in 2024 and has plans for another 13 in 2025.
Home Depot won expectations with a fantastic 2024 Fiscal fourth quarter . Comparable sales (KOMPS). It was the first increase in the computer in nine quarters. Earnings per share (EPS) was $ 3.02. Internet sales increased by 9% compared to the year in a quarter, as consumers exploit the improved delivery rate of Home Depot. Wall Street sought $ 39.2 billion in revenue and $ 3.01 EPS.
Despite the continuous high mortgage rates, the administration hears from their customers that they are ready to move on. “The improvement of the house always lasts,” said Cfo Richard McPhail in an interview. The combination of the industry without any number with the Star Model of the Home Depot has led to the incredible value of the shareholders.
