Analyst Says This is One of the Top Dividend Stock to Buy for Rate Cut Environment

Kevin Simpson, Capital Wealth Planning founder and CIO, said in a recent program on CNBC that he’s buying Home Depot (NYSE:HD) amid expectations of a rate cut. The analyst sees a new cycle of home renovation coming in the US.

“I think it’s just as pure as a lower rate environment because if you think about the retail consumer, we’ve been waiting since the pandemic for massive upgrades—appliances, wall coverings, floor coverings. But it’s not just the retail consumer. If you think about it a little bit further, multifamily homes and commercials haven’t done much in 3 years, just waiting for rates to come down. So, we’re going to see a big overhaul for new lobbies, new elevators, all of the things that you would do in your home, you’re going to see in multifamily. So, yes, this is a lower rate play. Get almost a 3% dividend while you wait.”

Image by Steve Buissinne from Pixabay

The London Company Large Cap Strategy stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q1 2025 investor letter:

“Exited: The Home Depot, Inc. (NYSE:HD) – Sale reflects a relatively high valuation (18.6x trailing EBITDA) along with a mixed outlook for consumer spending and housing activity. While the aging housing base and stable housing values are a positive for home improvement spending, we note that we already have exposure via Lowe’s and didn’t feel the need to own both companies.”

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Disclosure: None. This article is originally published at Insider Monkey.