On Tuesday, February 24, 2026, the Board of Directors of The Home Depot, Inc. (NYSE: HD) announced a quarterly dividend increase from $2.30 to $2.33 per share. The dividend will be payable on March 26, 2026, to shareholders of record as of March 12, 2026. This represents a 1.30% increase over the prior quarterly dividend.
Current Dividend Yield and Income Impact
At today’s opening price of $373.86, this increase raises HD’s forward dividend yield to approximately 2.49%.
As an owner of 15 shares of Home Depot, this dividend increase adds $1.34 to my projected annual net dividend income. I was expecting growth of around 4%, so this announcement was clearly disappointing. It appears that Home Depot, like many other companies, is following the trend of lower dividend growth in 2026.
Long-Term Dividend Growth Track Record
Home Depot is a Dividend Contender with a 16-year streak of dividend increases. According to Dividend Champions data, its dividend growth rates are:
-
1-year: 2.2%
-
3-year: 6.6%
-
5-year: 8.9%
-
10-year: 14.6%
This recent dividend increase marks the seventh consecutive raise I’ve received since initiating my position in March 2019. Over that time, the quarterly dividend has grown from $1.36 to $2.33 per share—an increase of approximately 71.3%, reflecting strong historical dividend growth despite the recent slowdown.
At the time of writing, HD represents about 0.56% of my portfolio and contributes approximately 0.36% of my projected annual dividend income. Following this increase, my yield on cost stands at 5.05%.
Quick Valuation Take
Home Depot appears fairly valued at current levels. While the company remains a dominant player in the home improvement space, growth has moderated due to a softer housing market and more cautious consumer spending.
Dividend Safety and Outlook
The dividend remains well supported by strong cash flows and a reasonable payout ratio. However, the sharp slowdown in dividend growth suggests that management is taking a more cautious approach in the current environment. Near-term dividend growth is likely to remain modest.
Final Thoughts
This was a disappointing dividend increase from Home Depot, falling well below my expectations. While the company remains a high-quality business and a solid long-term holding, the current low growth trend is something I will continue to monitor closely.
Summary of 2026 Dividend Increases / Cuts
Click here to see my portfolio holdings
You can follow the development of my dividends here
Full Disclosure: Long HD
Thanks for stopping by!
No comments:
Post a Comment