Buy Home Depot Stock for Your Retirement Portfolio
Home Depot (NYSE:HD) has been dominating the market for years. It’s a company to own both when the market is up and when it is down. With more than 2,300 stores across the United States, Mexico and Canada, there is no stopping Home Depot, and investors looking to strengthen their portfolios should consider HD stock.
If you want to build a solid retirement portfolio, HD stock is the one to invest in. The stock isn’t having its best days yet, but there is a chance to grow. Despite losing almost 17% of its value over the past six months, HD stock is a strong buy. It is trading at a bit over $308 today and has had a good week, up 3%.
Over the past two years, we spent a lot of time indoors and focused on the home. This helped Home Depot make solid revenue and generate an impressive cash flow. Consumer staples are always seen as a classic defensive play, and they pay solid dividends. Goldman Sachs has recently added HD stock to its best defensive picks list.
The gloomy forecast and inflation concerns may have an impact on the stock, but it will fizzle out in the long term. For now, the company has a dividend yield of 2.4%, which is a solid passive income generator. With solid cash flow, the company has enough room to keep growing the dividend in the future.
Analysts believe the price of HD stock will continue to rise and have an average target price of $373.41. HD stock can sustain market volatility and it can recession-proof your portfolio. The current dip in the stock is a good chance to make the move. Hold it for the long term to make the most of the dividends and the growth.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
