2 Dividend Stocks to Double Up on Right Now
It’s hard to find dividend-paying stocks with attractive growth prospects because the company has to be good enough free cash flow (FCF) support business opportunities and pay dividends.
Once you find these companies, it’s a good idea to research them periodically to determine what to do with the stock.Although you can do this throughout the year, January is a good time to do so.
Walmart: (NYSE: WMT) and: Main Depot (NYSE: HD) have a long history of increasing payouts and should continue to deliver capital appreciation opportunities. That makes them ideal candidates for current investors to buy more shares.
Walmart has become a household name with its namesake stores and Sam’s Club stores, currently serving 255 million customers each week.
While this core philosophy hasn’t changed, management has invested in technology to create a better experience for customers, such as online ordering and in-store pickup, including same-day delivery in most locations.
People continue to look to Walmart as a place to shop and spend money.Walmart’s core segment saw same-store sales (comps) increase by 5.3% in the fiscal third quarter.This growth was attributed to e-commerce was the period ended October 31, 2024.
Adjusted operating income for the quarter rose 6.2% excluding currency translation effects.Management expects profitability to grow at least 8.5% for the full year.
Walmart originally declared a dividend in 1974 and has raised it every year, making the company the dividend king.For the first nine months of the year, its $6.2 billion in dividends comfortably covered $5 billion in dividends.
The company’s strong business hasn’t gone unnoticed by investors, with shares up more than 71% in the past year to Jan. 2. Walmart shares are trading at a premium (P/E) ratio of 37 versus 30 for the S&P 500.
However, given the company’s performance and outlook, it seems reasonable that the stock has a higher valuation.
Founded in the late 1970s, Home Depot has become the largest home improvement retailer by revenue, with annual sales of more than $150 billion.
Its results fluctuate with the economy. This is because people buy homes and undertake major construction projects when they feel good about their personal finances.
English