ATLANTA - The Home Depot (NYSE:HD), recognized as the world's largest home improvement retailer, has declared a third-quarter cash dividend of $2.25 per share, as announced by its board of directors today. The dividend is scheduled to be paid out on December 12, 2024, to shareholders who are on record by the close of business on November 27, 2024.
This declaration marks the 151st consecutive quarter that The Home Depot has maintained its practice of distributing a cash dividend to its shareholders. The company's commitment to consistent shareholder returns is reflected in this long-standing history of quarterly dividends.
The Home Depot operates an extensive network of retail stores, with a total count of 2,345 locations, which includes over 780 branches. These stores are spread across a wide geographic range, encompassing all 50 states within the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the 10 Canadian provinces, and Mexico. The organization boasts a substantial workforce, employing more than 465,000 associates across its various branches and stores.
Investors and market watchers follow The Home Depot's financial activities closely, as the company's stock is a component of the Dow Jones Industrial Average and the Standard & Poor's 500 index. Shares of The Home Depot are publicly traded on the New York Stock Exchange under the ticker symbol NYSE:HD.
The information regarding the dividend declaration is based on a press release statement from The Home Depot. This announcement is a key financial event for the company's investors, who typically anticipate such declarations to make informed decisions regarding their investment portfolios. It is important to note that while the dividend payment provides a snapshot of the company's financial distributions, it does not necessarily indicate the overall financial health or future performance of The Home Depot.
In other recent news, Home Depot's third-quarter earnings revealed a 6.6% increase in total sales, reaching $40.2 billion, despite a 1.3% decline in comparable sales and a decrease in adjusted diluted earnings per share to $3.78. Evercore ISI, Mizuho (NYSE:MFG) Securities, and Loop Capital have all recently adjusted their price targets for Home Depot to $430, $440, and $465 respectively, with each firm maintaining a positive outlook on the company. These adjustments follow Home Depot's strategic initiatives, including the acquisition of Strategic Retail Solutions (SRS), and market developments such as the distribution of stimulus checks and vaccine rollouts.
Home Depot's focus on the professional segment of the market, including investments in technology and service, has been identified as a key factor in its continued market share gains. The company plans to open approximately 12 new stores and maintain a gross margin of about 33.5% despite potential challenges from high interest rates and a low housing turnover rate. These are among the recent developments that are shaping Home Depot's strategic direction and performance.
InvestingPro Insights
The Home Depot's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro Tips, the company has raised its dividend for 14 consecutive years and has maintained dividend payments for an impressive 38 consecutive years. This consistency underscores The Home Depot's commitment to rewarding its shareholders, which is particularly noteworthy given the company's position as a prominent player in the Specialty Retail industry.
The current dividend yield stands at 2.19%, based on InvestingPro Data, reflecting a solid return for income-focused investors. Moreover, the company has shown a dividend growth of 7.66% over the last twelve months, indicating its ability to increase shareholder value even in challenging economic environments.
The Home Depot's financial strength is further evidenced by its market capitalization of $401.75 billion and a robust revenue of $154.6 billion over the last twelve months. The company's profitability is also noteworthy, with a gross profit of $51.78 billion and an operating income of $21.17 billion during the same period.
Investors considering The Home Depot's stock may find it interesting that it's currently trading near its 52-week high, with a price that is 96.24% of its 52-week peak. This performance is reflected in the strong returns over various timeframes, including a 38.6% total return over the past year.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available, providing a deeper understanding of The Home Depot's financial position and market performance.
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