Tuesday, November 13, 2018

Recent buy: HD

I added 10 shares of Home Depot today ($1778) after they announced earnings. Was impressed with the beat and raise. Dividend yield is modest but I can see this dividend growing quite fast in the short term. They have a good track record of dividend payments as well.

Home Depot is cyclical on the housing business side, but for the super long term housing has done well in America and I believe it will be here to stay. It is very hard to "Amazon" this type of business and they have a duopoly across the states with Lowes (another dividend aristocrat). I do believe HD is the better managed company of the two.

Home Depot is one of my largest holdings in the whole portfolio. I hold close to $26,000 in this one company now. In the consumer discretionary space, my next big holding is Ross Stores at around $19,000. That company has been on fire recently with excellent execution. ROST has become so large in my portfolio largely by itself, I do not add too much to it because the yield is so low.


  1. Personally as an investor I despise all stocks operating in the retail business. All it takes is another company offering the identical product at a lower price. E.g. Amazon.

  2. Hey YD,

    Never got involved with HD, but their stores are definitely well laid out and the staff are great to deal with from my experience. Peter Lynch talked about this one in "One Up On Wall Street", I believe. Long history of rewarding shareholders.

    Take care,

  3. If you believe in MO then now is the time to add.

  4. Interesting choice YD. I love shopping at HD for all of my home repairs and house projects. I'll typically check their first before Lowes. I would like the yield to be a little higher before I initiate a position, but I can understand why you were looking to add. Congrats!