Time to go to Home Depot
Swapped the $30 red lipstick... for a $30 red Adirondack chair. Americans shifted their spending from restaurants and clothes to the only place that matters now: home. People re-painted kitchens, re-tiled floors and finally changed the broken toilet seat. We thought the DIY "house hype" might be slowing back in May. Based off Home Depot's latest earnings report, the hype is still strong:
And yet... the stock fell after the news. Home Depot's CEO didn't sound too hyped about the outlook for this quarter. He's uncertain how long the home spending boom can last:
Home Depot is consistent... It has paid dividends to shareholders for 134 quarters in a row. On Sept 17th, it'll pay each shareholder $1.50 per share as a cash dividend. Home Depot took home ~$11B in profit last year, which is about the same as what Amazon made. Yet Amazon is worth 5.5X more because investors see more potential future profit growth. Home Depot's present is pretty strong, though.