Why The Home Depot (HD) Remains a Reliable Dividend Pick in the Dogs of the Dow

The Home Depot, Inc. (NYSE:HD) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now.

Why The Home Depot (HD) Remains a Reliable Dividend Pick in the Dogs of the Dow

An insurance broker discussing policy options with a homeowner.

The company is facing challenges expanding its business amid a tough economic climate marked by elevated interest rates and growing caution among consumers when it comes to major purchases.

Still, several positive trends could work in the company’s favor. Housing inventory in the US remains tight compared to demand, and the average home is aging. In addition, homeowners have access to trillions of dollars in home equity that could be used for remodeling and improvements. As economic conditions stabilize or improve, Home Depot is likely to benefit from stronger demand.

In the first quarter of 2025, The Home Depot, Inc. (NYSE:HD) reported revenue of $39.86 billion, up 9.44% from the same period last year. Comparable sales declined by 0.3%, while US comparable sales saw a slight increase of 0.2%. The company noted that fluctuations in foreign exchange rates had a negative effect, reducing overall comparable sales by about 70 basis points.

The Home Depot, Inc. (NYSE:HD) reported an operating cash flow of $4.3 billion and ended the quarter with $1.4 billion in cash and cash equivalents. The company is a reliable dividend payer with 16 consecutive years of dividend growth under its belt. Currently, it offers a quarterly dividend of $2.30 per share for a dividend yield of 2.45%, as of July 26.

While we acknowledge the potential of HD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.