5 Best Dividend Stocks for Passive Income

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

Dividend Yield as of December 1: 2.35%

The Home Depot, Inc. (NYSE:HD) is an American multinational home improvement company that specializes in construction products. In Q3 2022, the company had $2.4 billion in cash and cash equivalents and its assets stood at $33.6 billion. The company paid $5.8 billion in dividends to shareholders, which makes it one of the best dividend stocks to buy.

In November, Truist maintained a Buy rating on The Home Depot, Inc. (NYSE:HD) with a $382 price target, appreciating the company’s business in the current environment.

The Home Depot, Inc. (NYSE:HD) currently offers a quarterly dividend of $1.90 per share for a dividend yield of 2.35%, as of December 1. The company maintains a 12-year streak of consistent dividend growth.

At the end of September 2022, 89 hedge funds tracked by Insider Monkey owned stakes in The Home Depot, Inc. (NYSE:HD), up from 80 in the previous quarter. These stakes have a collective value of over $5.6 billion.

Diamond Hill Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter. Here is what the firm has to say:

“The Home Depot, Inc. (NYSE:HD) shares were more resilient in Q3 as the company continues to perform well and reiterated guidance despite increasing market concerns regarding general inflationary pressures and the impact rising mortgage rates may have on the housing market. We view the longterm prospects and multi-year fundamental outlook as unchanged. Home improvement through repair and remodel is likely to be one of more resilient housing-related industries given the relative attractiveness for consumers to renovate existing homes rather than reset their current low fixed mortgage rate to higher rates that we’re seeing today.”