Is Home Depot A Good Dividend Stock? (NYSE:HD)

The Home Depot DIY Retail Store Front with Sign

The Home Depot DIY Retail Store Front with Sign

Lokibaho/iStock Unreleased via Getty Images

HD Stock’s Key Metrics

Home Depot (NYSE:HD) is the number one home improvement retailer with an estimated 17% market share in the United States. Most of the company’s sales growth is driven by various home improvement projects that are undertaken by either DIY homeowners or professionals on behalf of homeowners. Home Depot’s sales are evenly split between DIY homeowners and Pros. This is unlike HD’s rival Lowe’s Companies (LOW), whose majority of sales comes from DIY customers.

Throughout the years, HD showed significant market outperformance, which became especially noticeable during the last three years when Covid-19 hit:

Figure 1. Home Depot, Lowe’s Companies and S&P500 Price Performance

Stock Price Performance of Home Depot, Lowe's Companies and S&P500 Market Index

Stock Price Performance of Home Depot, Lowe’s Companies and S&P500 Market Index (TradingView)

Home Depot’s stock performance outpaced not only the S&P 500 but also

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