Though it is clear that home improvement giant Home Depot (HD) has big troubles with ICE these days, it is sticking to its guns in terms of its actual involvement with the enforcement agency. It recently released a statement to that effect, and though the statement will sound familiar, it provided a lot of support for investors. Investors demonstrated that support by sending shares surging over 3% in Friday morning’s trading.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Home Depot’s statement made it clear, once again, that its connection to ICE is tangential at best. Responding to concerns that Home Depot was working with the agency, Home Depot posted word on X saying, “This is untrue – we aren’t coordinating with ICE. We aren’t involved in ICE activities, and we aren’t notified when they are going to happen. We’re required to follow all federal and local rules and regulations in every market where we operate.”
Straightforward enough, albeit a bit familiar. This is not the first time we have heard Home Depot respond like this. But despite the fact that Home Depot ultimately has about as much control over the activities of federal enforcement bureaus as, say, a fish has over the stock market, that has not precluded calls for Home Depot to stand up or face consequences. Indeed, we have heard of several attempts to boycott Home Depot over the concept.
Hefty Dividend
But there was a point that likely fueled Home Depot’s advance today beyond what the response to potential ICE connections did. Home Depot announced a quarterly dividend, the 155th consecutive quarter in which it did so.
The dividend was substantial, too, weighing in at $2.30 per share. For a dividend, that is surprisingly solid. But that is quarterly, and with Home Depot shares priced at over $343 per share right now, the idea that it will be a major part of most investors’ income production is unlikely.
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, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 20.86% loss in its share price over the past year, the average HD price target of $411.55 per share implies 19.83% upside potential.
