This recent acquisition is nothing really but rebalancing the portfolio and reinvesting the funds from the sale of Baxter International Inc. (BAX) into something that is more sustainable and has a brighter dividend growth future. Therefore, I decided to go ahead and invest the proceeds into a The Home Depot Inc. (HD) for a number of reasons. As a recent homeowner, I go to HD quite often myself, especially with the recent home renovations that I have been doing. Slowly, but surely the place is coming together and I am still enjoying the home ownership and the renovation endeavors.
I believe The Home Depot Inc. (HD) as an investment has a really great business model that is geared towards the real estate market with potential upside due to the depressed overall market. I have also noticed a significant construction boom here in Chicagoland area. With this acquisition, I am continuing my diversification into businesses I use, I know, and are simple to understand.
Company Overview: The Home Depot Inc. was established in 1978 in Atlanta, GA. The company is a home improvement retailer that operates warehouses that sell a wide range of building materials, home improvement products, lawn and garden products and provide a number of professional contracting services. The company serves three primary customer groups such as the do it yourself customers, the do it for me customers and the professional contracting customers. Currently, the company operates around 2,200 stores located in the U.S. and its territories.
- Dividend Yield: 2.2%
- 3 Year Dividend Growth Rate: 15.1%
- Payout Ratio: 44.7%
- P/E: 23.5
- Consecutive Years of Dividend Raises: 3
I purchased 8 shares for the price of $125.55 adding $22.08 to my annual dividend income.
This is the 2nd time I am initiating a stock acquisition this year. The transaction is my first ever purchase of HD into the portfolio. Also, the acquisition of HD makes it the 35th company I am invested in. Currently, HD ownership stake represents to be around 1.4% of my current portfolio value.
The 12-month dividend income increased to $2,712.
Thank you for reading & have a great day!