5 Best Vanguard Dividend Stocks with High Yields

In this article, we discuss the 5 best Vanguard dividend stocks with high yields. If you want to read our detailed analysis of dividend stocks and the latest market situation, go directly to 10 Best Vanguard Dividend Stocks with High Yields.

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

Number of Hedge Fund Holders: 68

Dividend Yield (as of May 17): 2.55%

The Home Depot, Inc. (NYSE:HD) is a home improvement retail firm based in the United States. Enjoying strong demand during the Covid lockdown as people turned towards remodeling their homes, the firm is well-positioned for future growth given its dominant status in the industry.

As of May 17, The Home Depot, Inc. (NYSE:HD) offers a dividend yield of 2.55%. On February 22, the firm declared a quarterly dividend of $1.90, showing a 15.2% increase from its prior dividend of $1.65. The home improvement firm has grown its dividend payments to shareholders for 13 years in a row.

The Home Depot, Inc. (NYSE:HD) released its first quarter earnings report on May 17, and posted an EPS of $4.09, beating estimates by $0.40. Revenue of $38.91 billion was also above consensus estimates by $1.27 billion.

Wells Fargo analyst Zachary Fadem kept an ‘Overweight’ rating on The Home Depot, Inc. (NYSE:HD) shares after its Q1 earnings beat. He sees upside for the firm even in a slowing macro environment, and thinks  that the shares present an attractive entry point at current levels. The analyst set the price target at $350.

Investors were keen on The Home Depot, Inc. (NYSE:HD) at the close of Q4 2021, where 68 hedge funds reported ownership of the company shares, as compared to 58 hedge funds a quarter ago.

Ensemble Capital, an investment firm, talked about The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. The fund said:

“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.”