Top 5 Stock Picks of Billionaire Richard Chilton

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

Chilton Investment Company’s Stake Value: $299,965,000

Percentage of Chilton Investment Company’s 13F Portfolio: 6.30%

Number of Hedge Fund Holders: 68

The Home Depot, Inc. (NYSE:HD) is the biggest American home improvement retailer, selling building materials, lawn and garden products, home maintenance solutions, and décor, among other offerings. Richard Chilton held 722,790 shares of The Home Depot, Inc. (NYSE:HD) in Q4 2021, worth about $300 million, representing 6.30% of the total 13F securities. 

On February 22, The Home Depot, Inc. (NYSE:HD) declared a $1.90 per share quarterly dividend, a 15.2% increase from its prior dividend of $1.65. The dividend was distributed on March 24, to shareholders of record on March 10. The stock delivers a dividend yield of 2.48% as of April 28. 

Wells Fargo analyst Zachary Fadem on April 7 maintained an Overweight rating on The Home Depot, Inc. (NYSE:HD) but lowered the firm’s price target on the shares to $350 from $400 based on 20-times his full year 2023 EPS estimate. 

According to the fourth quarter database of Insider Monkey, The Home Depot, Inc. (NYSE:HD) was found in the public stock portfolios of 68 hedge funds, compared to 58 funds in the preceding quarter. Ric Dillon’s Diamond Hill Capital is a significant shareholder of the company, with 1.14 million shares worth $475.8 million. 

Here is what Ensemble Capital has to say about The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter:

“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.”