Home Depot (HD, Financial) is keeping its promise to shareholders with another quarterly dividend of $2.25 per share, payable on December 12 to investors on record by November 27. That makes it the 151st straight quarter of cash dividends—a streak of consistency that screams reliability in a market full of unpredictability. With a forward yield of 2.22%, it's no surprise income-focused investors continue to see Home Depot as a go-to holding, even as economic uncertainty weighs on consumer spending.
But the big story isn't just the dividend—it's what's coming in 2024. Home Depot expects total sales to grow 4%, thanks to a 53rd operating week and a $6.4 billion boost from its game-changing acquisition of SRS Distribution. The company has been transparent about headwinds, forecasting a 2.5% dip in comparable sales for the regular 52-week period. Still, it's keeping gross margins steady at 33.5% and adding 12 new stores, signaling confidence in its long-term growth story. Investors can also count on a 53rd-week sales surge of $2.3 billion and an extra $0.30 in diluted earnings per share, cushioning the blow from broader economic pressures.
And let's talk about that $18.25 billion SRS acquisition—because it's a power move. By diving deeper into the pro market, Home Depot is locking in revenue streams that aren't as vulnerable to economic swings. The acquisition has already fueled a 6% jump in Q3 sales, driven by SRS's massive logistics network and specialized catalog for roofing, pool, and landscaping pros. It's a smart pivot to tap into a $1 trillion pro market while competitors like Lowe's remain more DIY-focused. For investors looking ahead, Home Depot's shift toward professionals isn't just a strategic tweak—it's the engine that could drive growth through an unpredictable housing market in 2024 and beyond.
