5 Best Blue Chip Dividend Stocks to Buy Now

2. The Home Depot, Inc. (NYSE:HD) 

Number of Hedge Fund Holders: 98

Dividend Yield as of May 12: 2.99%

The Home Depot, Inc. (NYSE:HD) is the largest home improvement specialty retailer in the world, engaging in the sale of building materials and home improvement products. The company operates over 2,300 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, Canada, and Mexico.

On May 5, BofA reinstated coverage of Home Depot, Inc. (NYSE:HD) with a ‘Buy’ rating and a price target of $374, indicating an upside potential of 20% from the current share price.

The analyst firm called Home Depot, Inc. (NYSE:HD) its preferred stock within the home improvement sector, citing the company’s strong comparable growth driven by higher Pro penetration. BofA expects the company’s customer traffic trends to remain more resilient than its competitors.

Home Depot, Inc. (NYSE:HD) is projecting total sales growth of approximately 2.5% to 4.5% for FY 2026. Meanwhile, the company’s adjusted EPS growth is expected to range from flat to up 4% from the $14.69 delivered in FY 2025, reflecting a disciplined operating approach centered on cost control and steady demand capture rather than cyclical recovery assumptions. Home Depot is also targeting to open approximately 15 new stores in the ongoing year.