5 High Sharpe Ratio Dividend Stocks in the S&P 500

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

Number of Hedge Fund Holders: 64
Dividend Yield: 2.05%
Sharpe Ratio: 1.3

The Home Depot, Inc. (NYSE: HD), a home improvement retail company, is next on our list of high Sharpe ratio dividend stocks in the S&P 500, ranking 4th. The company provides building materials, home improvement products, building materials, lawn and garden products, and décor products, alongside installation, home maintenance, and professional service programs to do-it-yourself and professional customers. 

As of this August, Jefferies analyst Jonathan Matuszewski holds a Buy rating on shares of The Home Depot, Inc. (NYSE: HD), alongside a price target of $369. 

In the fiscal second quarter of 2022, The Home Depot, Inc. (NYSE: HD) had an EPS of $4.53, beating estimates by $0.10. The company’s revenue was $41.12 billion, up 8.05% year over year and beating estimates by $380.39 million. The Home Depot, Inc. (NYSE: HD) has gained 22.88% in the past 6 months and 21.81% year to date.

By the end of the second quarter of 2021, 64 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Home Depot, Inc. (NYSE: HD) worth roughly $4.2 billion. This is compared to 68 hedge funds in the previous quarter with a total stake value of approximately $4.4 billion.

Nelson Capital Management, an investment management firm, mentioned The Home Depot, Inc. (NYSE: HD) in its second-quarter 2021 investor letter. Here’s what they said:

“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. We also trimmed our position in Home Depot (tkr: HD), as it will be challenged by tough comparable statistics, supply chain issues, and rising commodity costs.”