Home Depot Shares Cross 3% Yield Mark

DividendChannel.com

According to Dividend Channel, in trading on Tuesday, shares of Home Depot Inc (HD) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.00), with the stock changing hands as low as $33.07 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1998 — you would have paid $123.31 per share. Fast forward to 12/31/2010 and each share was worth $125.75 on that date, a mere $2.44 or 2% increase over all those years. But now consider that you collected a whopping $20.53 per share in dividends over the same period, increasing your return to 18.6%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.4%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. Home Depot Inc (HD) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Home Depot Inc, looking at the history chart for HD below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.

HD Dividend History


Date

Div*


06/14/11

0.250


03/08/11

0.250


11/30/10

0.236


08/31/10

0.236


06/01/10

0.236


03/09/10

0.236


12/01/09

0.225


09/01/09

0.225


06/09/09

0.225


03/10/09

0.225


12/02/08

0.225


09/02/08

0.225


06/03/08

0.225


03/11/08

0.225


11/27/07

0.225


08/28/07

0.225


06/05/07

0.225


03/06/07

0.225


11/28/06

0.225


09/05/06

0.150


06/06/06

0.150


03/07/06

0.150


11/29/05

0.100


08/30/05

0.100


06/07/05

0.100


03/08/05

0.100


11/30/04

0.085


08/31/04

0.085


06/08/04

0.085


03/09/04

0.070


12/02/03

0.070


09/02/03

0.070


06/10/03

0.060


03/11/03

0.060


12/03/02

0.060


09/03/02

0.050


06/11/02

0.050


03/12/02

0.050


11/28/01

0.050


08/28/01

0.040


06/12/01

0.040


03/06/01

0.040


11/28/00

0.040


08/29/00

0.040


06/13/00

0.040


03/07/00

0.040


11/30/99

0.040


08/31/99

0.027


06/08/99

0.027


03/02/99

0.020


12/01/98

0.020


09/01/98

0.020


06/09/98

0.020


03/03/98

0.017


12/02/97

0.017


09/09/97

0.017


06/10/97

0.017


03/11/97

0.013


12/03/96

0.013


09/10/96

0.013


06/07/96

0.013


03/06/96

0.011


12/06/95

0.011


09/07/95

0.011


* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.




HD+Dividend+History+Chart
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HD+Dividend+History+Chart

HD operates in the Home Improvement Stores sector, among companies like Interline Brands Inc. (IBI) which is down about 2.1% today, and Fastenal Co. (FAST) trading lower by about 3.3%. Below is a three month price history chart comparing the stock performance of HD, versus IBI and FAST.

HD,IBI,FAST Relative Performance Chart
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HD,IBI,FAST Relative Performance Chart

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