Home Depot Stock Shares $81 Bil Success With Investors
In the last five years, Home Depot (HD) stock has returned a notable $81 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, HD stock has returned the 16th highest amount to shareholders in history.
| HD | S&P Median | |
|---|---|---|
| Dividends | $47 Bil | $3.0 Bil |
| Share Repurchase | $34 Bil | $3.0 Bil |
| Total Returned | $81 Bil | $6.0 Bil |
| Total Returned as % of Current Market Cap | 24.8% | 19.1% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
- Home Depot Stock Pays Out $129 Bil – Investors Take Note
- Buy or Sell Home Depot Stock?
- Home Depot Stock Shares $130 Bil Success With Investors
- Ten-Year Tally: HD Hands Back $130 Bil to Shareholders
- Home Depot vs. Lowe’s: Why Pay a Premium for HD Stock?
- A Decade of Rewards: HD Returns $130 Bil to Investors
| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $604 Bil | 16.2% | $89 Bil | $515 Bil |
| GOOGL | $328 Bil | 9.7% | $17 Bil | $310 Bil |
| MSFT | $265 Bil | 9.7% | $121 Bil | $144 Bil |
| JPM | $197 Bil | 24.6% | $84 Bil | $113 Bil |
| XOM | $167 Bil | 23.8% | $94 Bil | $73 Bil |
| META | $165 Bil | 12.0% | $10 Bil | $155 Bil |
| BAC | $140 Bil | 39.5% | $53 Bil | $88 Bil |
| CVX | $123 Bil | 29.8% | $67 Bil | $57 Bil |
| WFC | $116 Bil | 47.3% | $27 Bil | $90 Bil |
| V | $99 Bil | 16.9% | $22 Bil | $77 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for HD. (see Buy or Sell Home Depot Stock for more details)
Home Depot Fundamentals
- Revenue Growth: 7.5% LTM and 1.9% last 3-year average.
- Cash Generation: Nearly 8.4% free cash flow margin and 13.0% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for HD was -2.3%.
- Valuation: Home Depot stock trades at a P/E multiple of 22.4
| HD | S&P Median | |
|---|---|---|
| Sector | Consumer Discretionary | – |
| Industry | Home Improvement Retail | – |
| PE Ratio | 22.4 | 23.6 |
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| LTM* Revenue Growth | 7.5% | 6.6% |
| 3Y Average Annual Revenue Growth | 1.9% | 5.5% |
| Min Annual Revenue Growth Last 3Y | -2.3% | 0.4% |
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| LTM* Operating Margin | 13.0% | 18.7% |
| 3Y Average Operating Margin | 13.7% | 18.2% |
| LTM* Free Cash Flow Margin | 8.4% | 14.3% |
*LTM: Last Twelve Months
The table gives a good overview of what you get from HD stock, but what about the risk?
HD Historical Risk
Home Depot isn’t risk-free either. It fell over 52% in the Dot-Com bubble and about 54% during the Global Financial Crisis. The stock also took a 38% hit amid the COVID selloff and dropped 35% in the inflation shock recently. Even smaller corrections, like in 2018, pulled it down 25%. Home improvement or not, when markets turn, big dips are part of the game.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read HD Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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