Good news for fans of home improvement giant Home Depot (HD) in Georgia emerged recently as Home Depot is seeking tax incentives for a major new project. The new project will bring a hefty slug of cash investment to the region, and from the look of it so far, the county is on board. The news was good enough to investors, as shares ticked up fractionally in Wednesday morning’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Home Depot plans to set up a project valued at around $140 million in Cobb County, and the Cobb County Development Authority seemed pleased enough to offer “initial approval” for the project. The $140 million project will cover not only its headquarters, reports note, but also two other corporate campuses in a project that will take until 2030 to complete.
Naturally, Home Depot sought a tax break for such a project. And why not? After all, $140 million in investment is no small thing. And Home Depot is looking to revitalize some of its operations that have been “severely underutilized” since the pandemic, including office buildings at Pennant Park and Paces Summit. Better yet, especially for Home Depot employees who are also parents, Home Depot will also augment its Little Aprons Academy child care operation.
Depot Dividends
Meanwhile, we also got word about Home Depot’s dividends, and how it keeps managing to deliver impressive and rising dividends. In fact, reports note, Home Depot has raised its dividend 53% since 2020. And, even with a payout like this, its payout ratio is still just 62%, leaving room to grow still further.
Best of all, Home Depot is likely able to sustain this growth, reports note. Home Depot looks for a small increase in sales, up 1% for the fiscal year ending in January. Thus, a combination of solid sales figures—even in an uncertain economy—and a solid brand that continues to produce results is what gives Home Depot’s dividend picture its strength.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 18 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 9.75% rally in its share price over the past year, the average HD price target of $445.14 per share implies 5.36% upside potential.
