Home Depot's Payouts Fail to Boost Stock Performance Amid Housing Slowdown

Home Depot's (HD) shareholders received an astonishing $65.6 billion in dividends and buybacks over the last five years, amounting to 22.6% of the company's market value.

This is significantly higher than the median S&P 500 company's payout ratio of 16.8%. However, despite these generous payouts, the stock underperformed the market, with a total return of -2.3% over the same period.

The company generated $169.18 billion in revenue over the last twelve months and has maintained consistent free cash flow between $12.6 billion and $17.9 billion every trailing-twelve-month period over the last three years.

Management plans to focus on paying down debt rather than resuming buybacks, which were paused in March 2024, while it prioritizes winning the Pro customer and creating a frictionless interconnected experience through its nationwide Express Delivery service launched on August 18, 2026.