5 Best Dividend Stocks According to Richard Chilton’s Chilton Investment Company

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

Dividend Yield as of May 20: 2.65%
Number of Hedge Fund Holders: 68
Chilton Investment Company’s Stake Value: $220,059,000

The Home Depot, Inc. (NYSE:HD) is an American home improvement retailer dealing in supplying tools, construction products, and related products. In May, Citigroup increased its earnings estimates on the company for fiscal 2022 and raised its price target on the stock to $348. The firm rated the stock as Buy.

With shares worth over $2.4 billion, Fisher Asset Management was the leading shareholder of The Home Depot, Inc. (NYSE:HD) in Q1 2022. Overall, 68 hedge funds tracked by Insider Monkey held stakes in the company in Q4 2021, up from 58 in the previous quarter. These stakes hold a consolidated value of over $6 billion.

The Home Depot, Inc. (NYSE:HD) currently pays a quarterly dividend of $1.90, after announcing a 15% hike in its annual dividend in February. This marked the company’s 14^th annual dividend increase. The stock’s dividend yield was recorded to be at 2.65%, as of May 20.

The Home Depot, Inc. (NYSE:HD) has been a part of Chilton Investment Company’s portfolio since 2010. In Q1 2022, the hedge fund raised its stake in the company by 2% to $220 million. The company represented 5.28% of Richard Chilton’s portfolio.

Ensemble Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm has to say:

“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”