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last mo.

Investors Split on Home Depot as Rate-Cut Bets Collide With Valuation Concerns

A freshly declared $2.30 quarterly dividend underscores the chain’s income appeal despite only about 1% expected comparable growth.

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Overview

  • Capital Wealth Planning’s Kevin Simpson told CNBC he is buying Home Depot as a lower-rate play, saying investors can “get almost a 3% dividend” while they wait.
  • The London Company Large Cap Strategy reported exiting its Home Depot position in Q1 2025, citing a relatively high 18.6x trailing EBITDA valuation and a mixed outlook for consumer and housing activity.
  • Home Depot declared a $2.30 per-share quarterly dividend on August 21, extending a 16-year streak of annual payout increases and representing a 53% rise from $1.50 in 2020.
  • Recent reporting places the payout ratio at about 62% and the dividend yield at 2.18% as of September 12.
  • Management continues to guide for roughly 1% comparable sales growth for the fiscal year ending in January, signaling restrained near-term demand.