Home Depot Dividend Holds Firm Despite Slipping Returns

Home Depot paid out $2.3 billion in dividends during its second quarter, despite return on invested capital slipping to 24.8% from 27.2% a year earlier.

The quarterly dividend has increased to $2.33, up from the $2.30 rate that held across four straight payments, and further above the $2.25 level in place before that.

At a 48.74% payout ratio against a 3.21% forward yield, Home Depot stock is committing under half its earnings to the dividend while paying well above the 2.37% average yield the stock has carried historically.