5 Dividend Stocks for Passive Income

In this article, we discuss 5 dividend stocks for passive income. If you want to read our detailed discussion on dividend income and dividend stocks’ performance, go directly to read 15 Dividend Stocks for Passive Income.

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

Dividend Yield as of July 28: 2.54%

An American home improvement company, The Home Depot, Inc. (NYSE:HD)’s financial health has remained strong over the years. In 2021, the company generated over $14 billion in free cash flow and expects the number to reach $17.4 billion by FY23.  Its commitment to shareholders has always remained consistent as well, distributing dividends worth over $2 billion during the first quarter of 2022.

The Home Depot, Inc. (NYSE:HD) has been raising its dividends consecutively for the past 14 years and its 10-year dividend CAGR came in at 17.9%. The company currently offers a quarterly payout of $1.90 per share, with a dividend yield of 2.54%, as of July 28.

In June, Citigroup raised its price target of The Home Depot, Inc. (NYSE:HD) to $348 with a Buy rating on the shares, increasing the company’s FY22 earnings estimates.

At the end of Q1 2022, 75 hedge funds in Insider Monkey’s database presented a bullish stance on The Home Depot, Inc. (NYSE:HD), owning stakes worth nearly $5.6 billion. With over 8 million shares, Fisher Asset Management was the company’s leading stakeholder in Q1.

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

“Home Depot shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”