5 Best Long-Term Dividend Stocks to Buy Now

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

Dividend Yield as of October 19: 2.67%

The Home Depot, Inc. (NYSE:HD) is an American home improvement company. Its strong cash position makes it one of the best dividend stocks for long-term investors. The company generated sufficient cash during the second quarter of 2022 to support its dividend payments worth $4 billion.

The Home Depot, Inc. (NYSE:HD) has been growing its dividends consistently for the past 12 years and has a five-year dividend CAGR of 16.4%. It currently offers $1.90 per share in quarterly dividends with a dividend yield of 2.67%, as of October 19.

In October, Jefferies lifted its price target on The Home Depot, Inc. (NYSE:HD) to $394 with a Buy rating on the shares. The firm highlighted the company’s outsized exposure to repair and replacement.

As per Insider Monkey’s database, 80 hedge funds tracked by Insider Monkey owned stakes in The Home Depot, Inc. (NYSE:HD), growing from 75 in the previous quarter. These stakes hold a collective value of over $5.3 billion, compared with $5.6 billion worth of stakes owned by hedge funds in the preceding quarter.

Diamond Hill Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q2 2022 investor letter. Here is what the firm had to say:

“The Home Depot, Inc. (NYSE:HD) is a high-quality operator in the home improvement industry. Macroeconomic concerns, particularly the rise in mortgage rates, caused the share price to pull back and trade at a greater discount to our estimate of intrinsic value. We believe Home Depot is well positioned to continue gaining share due to its premium real estate locations, strong operations and recent investments in its supply chain. We like Home Depot’s exposure to the professional customer and believe in its ability to take market share in this segment as we believe home improvement spending has the potential to remain resilient in upcoming years.”