Invest Every investor wants to retire with enough money to give them a comfortable long life and a lot of leftovers for their heirs or loved ones. A diversified, informed strategy is the best way to get there risk-adjusted.
Part of that strategy should be to start early և to allow the magic of the mix to do its job. The other is to have a mix of growth, value, and dividend-paying properties. Home Depot: (NYSE: HD) It is the stock that secures the growing business, և the one that continues to share its cash flow with shareholders through sharply increasing dividends. Shares may not always be a bargain, but by investing more along the way and reinvesting, investors can use this stock to retire with the amount they want.
Looking back 10 years ago
Most investors need to invest for more than 10 years to claim millionaire status. But at least for the past decade, owning Home Depot has given investors a good chance of retiring as a millionaire. The performance of the shares was significantly higher S&P 500: index, including dividends, which themselves have increased by more than 500%.
This performance was the result of a focus on business growth and improvement. The company does not interfere with some of the new technologies that may become obsolete when a new product enters the market. It has worked on the growth of its business, using existing technology, taking advantage of current trends in the home renovation market. The result was a significant cash flow that allowed him to continue reinvesting while returning capital to shareholders through both dividends and share repurchases.
Home Depot achieved these results largely out of demand. In 2017, it announced a new investment program, One One Depot, which consisted of a multi-year, $ 11 billion investment program to create the company’s online channels, merging the digital-to-physical shopping experience for customers. It started to pay off even before the epidemic, but it was extremely successful, taking advantage of the increase in home reconstruction during the 2020 epidemic.
The company also acquired HD Supply, a service, repair and maintenance product supplier, in a $ 8 billion deal announced in late 2020 to focus on a professional contractor base.
The results have been phenomenal over the past year. Revenues for fiscal 2020 have increased by 19.9% compared to 2019. Sales also grew by about 20% year-on-year, and slightly higher in the United States. That success lasted until 2021. In the first quarter of this year, which ended on May 2, sales increased. 33% compared to the previous year.
And the leadership continues to innovate. It has 1,300 rental locations; in June, it launched the “Rent Online, Shop Online” program. The program has spread to North America. According to Richard Porter, vice president of The Home Depot Rental, it allows both professional and independent clients to “comfortably check the availability of equipment, book in advance what they need to get in and out of our rental centers faster than ever.” : ”
The new program shows that the management of Home Depot is not satisfied with adhering to the status quo. And plans to continue to share success with investors. In May 2021, the company announced a dividend, which will be the 137th consecutive quarter that the company has paid cash dividends. This payment represents a 10% increase over the previous year’s quarterly dividend. Home Depot has also approved a new $ 20 billion share repurchase program.
Home Depot announces its second quarter financial income on August 17 next year. Investors of all ages who do not yet have stocks should consider issuing և examining whether the stocks fit their portfolio. It is likely that it տեղ has a place և may be a stock that can help an investor become a millionaire upon retirement.
This article presents the opinion of a writer who may disagree with the position of the “official” offer of Motley Fool Premium Consulting. We are motley! Investigating an investment thesis, even our own, helps all of us think critically about investing, making decisions that will help us become smarter, happier, and richer.