5 Dividend Stocks to Buy According to Billionaire Ken Fisher

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

Fisher Asset Management’s Stake Value: $2,435,009,000
Dividend Yield as of June 15: 2.73%
Number of Hedge Fund Holders: 75

The Home Depot, Inc. (NYSE:HD) specializes in home improvement and sells tools, construction products, and appliances to its consumers. In the first quarter of 2022, the company experienced a positive hedge fund sentiment, with 75 elite funds tracked by Insider Monkey owning stakes in the company, up from 68 in the previous quarter. The consolidated value of these stakes is roughly $5.6 billion.

Fisher Asset Management started investing in The Home Depot, Inc. (NYSE:HD) during Q1 of 2012, purchasing shares worth $308,000. At the end of Q1 2022, the hedge fund owned more than 8 million HD shares, valued at over $2.4 billion. The company made up 1.43% of Ken Fisher’s portfolio.

On May 19, The Home Depot, Inc. (NYSE:HD) announced a quarterly payout of $1.90 per share, with a dividend yield of 2.73%, as of the close of June 15. The company maintains a 14-year track record of consistent dividend growth. Following its strong Q1 results, Citigroup lifted its price target on The Home Depot, Inc. (NYSE:HD) to $348 in May, with a Buy rating on the shares. The firm also increased the company’s FY22 earnings estimates after noticing growth in its major segments.

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.”