Home Depot

HD

Market cap $320B

Investors love dividend stocks, especially the blue-chip variety, because they offer a significant income stream and have massive total return potential.

Home Depot (HD) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

These companies have each faced headwinds in recent years -- but are leaders in their markets. Now, as they've reached key transition points, could be a good time to invest.

The stock market and the economy are not the same thing, but in 2026, they share one trait: skepticism. Despite blockbuster earnings reports from companies like NVIDIA NYSE: NVDA, Palantir Technologies NASDAQ: PLTR, and Alphabet NASDAQ: GOOGL, this may be the most reluctant bull market in history.

Northrop Grumman, Home Depot, and McCormick & Company offer attractive risk/reward after significant underperformance versus the AI-driven market. NOC benefits from defense spending tailwinds, a robust order book, and a 1.7% yield, trading at 21x earnings with high-single-digit EPS growth expected. HD trades below its historical average P/E, maintains resilient guidance, and offers a 3.1% yield, with upside potential as housing stabilizes.

Despite beating analyst estimates in the latest fiscal quarter, this industry leader's financials are negatively impacted by the macro backdrop. In recent years, the leadership team has made meaningful acquisitions that strengthen the company's position with a key customer group.

Home Depot once again grew its same-store sales in a tough environment. The stock is now at one of its cheapest valuations in years.

Barron's Oil & Blue Chip Tips for May 2026 highlight 20 stocks, with 11 deemed 'safer' based on free cash flow yields exceeding dividend yields. Top ten by yield are projected to deliver average net gains of 36.08% by May 2027, with risk/volatility 24% below the market average. Zoetis (ZTS), Danaher (DHR), and Accenture (ACN) lead in projected returns, with ZTS estimated to net 60.33% and lower-than-market volatility.

While President Donald Trump said he would "remember" the companies that didn't seek tariff refunds, many of the largest U.S. companies have done so anyway. Among the major U.S. corporations that have tried to get the money they paid in duties back are Walmart, Apple, Nike, Home Depot, General Motors, FedEx and Costco.

ATLANTA, May 21, 2026 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today announced that its board of directors declared a quarterly cash dividend of $2.33 per share. The dividend is payable on June 18, 2026, to shareholders of record on the close of business on June 4, 2026.