#7 - Home Depot (NYSE:HD)
Home Depot (NYSE:HD) represents the other half of the duopoly in home improvement stocks. When it comes to loving the home you have, many consumers think immediately of Home Depot’s signature orange signage.
One reason that you can be bullish about Home Depot is that the company is now an omnichannel retailer. That means consumers can place orders digitally and pick up those orders at the store, access curbside delivery, or have the products delivered to their homes.
Prior to the pandemic, some investors were concerned about the expenses that the company was taking on to bulld its digital footprint. But the company was in a unique position to assist homeowners who couldn’t go to the store.
HD stock is down 24% for the year but, like Lowe’s, it is beating earnings and revenue results on a year-over-year basis. And while Home Depot is not yet a dividend aristocrat like Lowe’s, it does offer a dividend with a yield of 2.41% and has a payout of $7.60 on an annual basis.
About Home Depot
The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.
Read More - Current Price
- $400.21
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 22 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $415.26 (3.8% Upside)
As you can see, many of the stocks on this list are good stocks to own at any time. But if you're looking to maintain a diversified portfolio in a housing downturn, the stocks listed here are solid choices. One reason for that as you read is that many of these stocks pay a dividend. So you get paid even if the stock doesn't provide market-beating capital growth.
And just like other sectors, when investing in the housing sector it's important to focus on areas of the market that are likely to be recession proof. In 2022, that means looking at health care and stocks that allow you to take advantage of increased infrastructure spending which will likely prop up the market in the next several years.
If you're looking for a different way to invest in this housing downturn, you could consider an exchange-traded fund (ETF) that focuses on housing infrastructure are the Invesco Dynamic Building & Construction ETF (NYSEARCA:PKB) and the Hoya Capital Housing ETF (NYSEARCA:HOMZ). Investors with a higher risk tolerance may want to look at an inverse ETF such as the ProShares UltraShort Real Estate (NYSEARCA:SRS).
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