Home Depot's Dividend Strength Tested as Same-Store Sales Slow

Home Depot has consistently raised its dividend for 17 consecutive years and is set to report earnings on August 18. The company's same-store sales have been under pressure due to higher interest rates and inflationary pressures, decreasing by 3.2% in fiscal 2023 and rising only 0.3% in fiscal 2025.

Despite softer sales momentum, Home Depot has never had an issue generating consistent profits, posting positive free cash flow every year since the great recession. The company's dividend yield of 2.67% is much higher than Walmart's, which could be attractive to income investors.

The Motley Fool Stock Advisor analyst team recommends considering alternative stocks, such as those that have outperformed the S&P 500 by an average of 967% over time. However, Home Depot's long history of dividend payments and consistent profits make it a solid choice for investors looking for stability.