Core Insights - Dividend stocks are attractive for long-term investors seeking reliable cash flow, especially for retirees needing passive income [1][2] - Reinvested dividends can significantly enhance total returns and provide stability during market downturns [2] - The article highlights four top dividend stocks for investment over the next five years [3] Company Summaries Pfizer - Pfizer has maintained 348 consecutive quarterly dividend payments and increased payouts for 16 years, offering a forward yield of around 7% [4][5] - The company is targeting over $7 billion in savings by 2027 to improve operating margins and free cash flow, ensuring it can cover dividend payments while reinvesting [5] - Pfizer reported $9.4 billion in net income on $45 billion in revenue for the first nine months of 2025, with net income up 24% year-over-year [9] Johnson & Johnson - Johnson & Johnson has increased its dividends for 63 consecutive years, yielding around 2.6%, which is more than double the S&P 500 average [10] - The company has a strong balance sheet with an AAA credit rating and over $20 billion in annual free cash flow, supporting continued dividend payouts [10] - In Q3 2025, sales grew by approximately 7% to $24 billion, with adjusted EPS increasing by 16% year-over-year [13] Home Depot - Home Depot has increased its dividend annually for 16 years, currently yielding 2.7% [15] - The company’s recent $5.5 billion acquisition of GMS is expected to enhance its specialty building products business [16] - In Q3, Home Depot's sales rose 2.8% year-over-year to $41.4 billion, with net earnings totaling $3.6 billion [18] Realty Income - Realty Income has a flawless record of paying monthly dividends, with a current yield of approximately 5.7% [20] - The company’s properties are primarily single-tenant, freestanding commercial properties, with over 90% of rental income from resilient businesses [21] - Realty Income's Q3 revenue was $1.47 billion, up about 11% year-over-year, with a strong occupancy rate of 98.7% [23][24]

Market Overview - The Dow Jones Industrial Average closed on November 26th, 2025, with a gain of 314.67 points (0.6679%), reaching 47427.12, driven by investor optimism regarding a potential Federal Reserve interest rate cut in December [1] - Despite mixed economic data, the sentiment around monetary policy easing contributed to a broader rally in U.S. equities ahead of the Thanksgiving holiday [1] Contributing Factors - Expectations of a rate cut, a sustained AI-led rally, and solid corporate earnings reports were key contributors to the market's strong performance [2] - Technology companies experienced renewed interest, extending a multi-day winning streak for major indexes, with advancers significantly outnumbering decliners on the NYSE [2] Company Performance - Boeing (BA) led the Dow's components with a gain of +2.58%, followed by Walmart (WMT) at +2.29% and Microsoft (MSFT) at +1.96% [3] - Goldman Sachs (GS) and Home Depot (HD) also saw increases of +1.66% and +1.51%, respectively [3] - Salesforce (CRM) was the biggest laggard, dropping -2.68%, potentially due to company-specific news or sector rotation, with IBM (IBM) and Merck & Co. (MRK) also declining by -0.39% and -0.24% [3]

Core Viewpoint - Home Depot is experiencing significant stock underperformance due to softer market expectations for housing and home improvement spending, with its stock declining over various time frames compared to the Nasdaq Composite index [2][4][5]. Financial Performance - Home Depot reported third-quarter fiscal 2025 revenue of $41.35 billion, a 2.8% year-over-year increase, slightly exceeding Wall Street's expectation of $41.21 billion [5]. - The adjusted EPS for Home Depot declined by 1.1% annually to $3.74, falling short of the expected $3.83 [5]. - The stock dropped 6% intraday following the earnings report on November 18 [5]. Stock Performance - Home Depot's stock reached a 52-week low of $326.31 in April but has since increased by 7.6% from that level; however, it has dropped 14.1% over the past three months [2]. - Over the past 52 weeks, Home Depot's stock has declined by 18.1%, and it is down 3.2% over the past six months, while the Nasdaq Composite gained 20.8% and 22.9% in the same periods [4]. Market Conditions - The company is facing a challenging operating environment, with a lack of storm activity impacting specific product categories and ongoing consumer uncertainty affecting performance [6]. - Home Depot anticipates continued pressure in the fourth quarter due to these factors [6]. Competitive Comparison - Compared to Lowe's Companies, Inc., which has dropped 13.5% over the past 52 weeks but gained 7.7% over the past six months, Home Depot has been the clear underperformer [7].

Core Insights - The Home Depot, Inc. is recognized as one of the best long-term stocks to buy according to Reddit discussions [1] - Telsey Advisory has lowered its price target for Home Depot to $430 from $455 while maintaining an Outperform rating, citing a weaker near-term outlook but affirming its long-term potential [2] - In Q3, Home Depot reported adjusted earnings per share of $3.74 on sales of $41.35 billion, with a 0.1% year-over-year increase in same-store sales and a 2.8% overall revenue growth [3] - The company updated its full-year revenue growth expectation to approximately 3%, slightly above previous forecasts, while anticipating only "slightly positive" growth in same-store sales [4] Financial Performance - Adjusted earnings per share for Q3 were $3.74 [3] - Total sales for Q3 reached $41.35 billion [3] - Same-store sales increased by 0.1% year-over-year, while overall revenue grew by 2.8% [3] - The average ticket size rose by 2%, but same-store transactions fell by 1.6% [3] Guidance and Outlook - Home Depot expects full-year revenue growth of roughly 3%, up from a previous forecast of 2.8% [4] - The company revised its same-store sales growth expectation from 1% to "slightly positive" compared to the previous year [4]

Financial Performance - Net sales for the three months ended November 2, 2025, were $41,352 million, an increase of 2.8% compared to $40,217 million for the same period in 2024[20] - Gross profit for the nine months ended November 2, 2025, was $42,399 million, up from $40,274 million, reflecting a growth of 5.3%[20] - Operating income for the three months ended November 2, 2025, was $5,353 million, slightly down from $5,418 million in the prior year, indicating a decrease of 1.2%[20] - Net earnings for the nine months ended November 2, 2025, were $11,585 million, compared to $11,809 million for the same period in 2024, a decline of 1.9%[20] - Total net sales for the nine months ended November 2, 2025, reached $126,485 million, up from $119,810 million for the same period in 2024, indicating a year-over-year growth[45] - Net sales for Q3 2025 were $41.4 billion, a 2.8% increase from $40.2 billion in Q3 2024, driven by GMS acquisition contributing $892 million[99][113] - Net earnings for Q3 2025 were $3.6 billion, or $3.62 per diluted share, compared to $3.65 billion, or $3.67 per diluted share in Q3 2024[99][124] - Gross profit for Q3 2025 was $13.8 billion, maintaining a gross profit margin of 33.4%[118] - Gross profit for the first nine months of fiscal 2025 rose 5.3% to $42.4 billion, with a gross profit margin of 33.5%[134] Assets and Liabilities - Total assets increased to $106,274 million as of November 2, 2025, from $96,119 million as of February 2, 2025, representing a growth of 10.9%[17] - Current liabilities rose to $34,367 million as of November 2, 2025, compared to $28,661 million as of February 2, 2025, an increase of 20.0%[17] - Total receivables, net, increased to $6,765 million as of November 2, 2025, compared to $4,903 million as of February 2, 2025, reflecting a significant growth in customer receivables[31] - Net property and equipment increased to $31.3 billion as of November 2, 2025, from $29.1 billion as of February 2, 2025[50] - Total lease liabilities amounted to $12.406 billion as of November 2, 2025, compared to $11.928 billion as of February 2, 2025[51] - Goodwill increased to $22.267 billion as of November 2, 2025, from $19.475 billion as of February 2, 2025, primarily due to acquisitions[53] Cash Flow and Investments - The company reported a cash flow from operating activities of $12,978 million for the nine months ended November 2, 2025, down from $15,139 million in the prior year, a decrease of 14.3%[28] - Capital expenditures for the nine months ended November 2, 2025, were $2,621 million, compared to $2,384 million in the same period last year, an increase of 9.9%[28] - Cash collateral related to derivative instruments was $444 million and $668 million as of November 2, 2025, and February 2, 2025, respectively[72] - Net cash provided by operating activities decreased by $2.2 billion in the first nine months of fiscal 2025 compared to the same period in fiscal 2024, primarily due to changes in working capital[160] - Net cash used in investing activities decreased by $12.1 billion in the first nine months of fiscal 2025 compared to the same period in fiscal 2024, mainly due to higher cash paid for acquisitions in fiscal 2024[161] - Net cash used in financing activities in the first nine months of fiscal 2025 included $6.9 billion in cash dividends paid and $3.4 billion in repayments of long-term debt[162] Shareholder Returns - The company approved a $15.0 billion share repurchase authorization in August 2023, with approximately $11.7 billion remaining available as of November 2, 2025[74] - The company recorded cash dividends per share of $2.30 for the three months ended November 2, 2025, and $6.90 for the nine months ended November 2, 2025[73] - Approximately $11.7 billion of the $15.0 billion share repurchase authorization remained available as of November 2, 2025[151] - The company paused share repurchases in March 2024 and has not resumed share repurchase activity as of November 2, 2025, with $11.66 billion remaining under the share repurchase program[175] Acquisitions and Business Expansion - The company completed the acquisition of GMS on September 4, 2025, expanding its product offerings in the interior and construction products segment[40] - The company completed the GMS acquisition for approximately $5.5 billion, enhancing its position in the building materials distribution market[103] - Net sales attributable to GMS since the acquisition totaled $892 million for the three and nine months ended November 2, 2025[93] - The preliminary purchase price allocation for GMS included $2.6 billion in goodwill and $1.8 billion in intangible assets[88] Tax and Regulatory Matters - The effective tax rate for fiscal 2025 is not expected to be materially impacted by the One Big Beautiful Bill Act, which allows for 100% expensing of qualified property[33] - The effective income tax rate for Q3 2025 was 24.3%, slightly down from 24.4% in Q3 2024[123] - The effective income tax rate increased to 24.3% for the first nine months of fiscal 2025, compared to 23.9% in the same period of fiscal 2024[139] Operational Metrics - The company’s selling, general and administrative expenses for the three months ended November 2, 2025, were $7,134 million, compared to $6,846 million in the same period last year[42] - The company’s depreciation and amortization expenses for the nine months ended November 2, 2025, totaled $2,090 million, slightly up from $2,073 million in the prior year[42] - Operating expenses increased to $8.5 billion in Q3 2025, representing 20.5% of net sales, up from 19.9% in Q3 2024[109][120] - SG&A expenses increased by $1.9 billion, or 9.1%, to $22.9 billion, representing 18.1% of net sales[136] Market and Risk Factors - There were no material changes to market risks from those disclosed in the 2024 Form 10-K, including exposure to interest rate fluctuations and foreign currency exchange rate fluctuations[166] - There were no material changes in risk factors discussed in the 2024 Form 10-K during the first nine months of fiscal 2025[173] - The company is undergoing a business transformation initiative, which includes upgrading and migrating accounting and finance systems over the next few years[168] Sales Performance - For the three months ended November 2, 2025, net sales for the Primary segment were $37,462 million, an increase of 0.5% compared to $37,289 million for the same period in 2024[42] - The company reported a net sales increase in building materials to $13,596 million for the three months ended November 2, 2025, compared to $13,531 million for the same period in 2024[45] - Net sales in the U.S. for the three months ended November 2, 2025, were $38.126 billion, up from $37.135 billion in the prior year, representing a 2.7% increase[46] - Comparable sales increased by 0.2% in Q3 2025, with a 1.8% rise in comparable average ticket, offset by a 1.6% decrease in comparable customer transactions[110][116] - Online sales accounted for 15.2% of net sales in Q3 2025, increasing by 11.4% compared to Q3 2024[114] - Online sales accounted for 15.4% of net sales during the first nine months of fiscal 2025, increasing by 10.8% compared to the same period in fiscal 2024[131] - Comparable sales increased by 0.3%, with a 1.1% rise in comparable average ticket, offset by a 0.8% decrease in comparable customer transactions[132]

All right. Well, Friday marks the stop the start of the holiday shopping season as US consumers head back out on Black Friday. And this comes after last week's earnings from a number of retailers showed a mixed picture about the state of the consumer with a growing divide between the halves and have nots.Joining us now is John San Marco, senior research analyst at New Burger B. John, good to see you. My big question heading into this season is discounting, especially given that commentary during earnings se ...

Market Overview - The market is experiencing volatility with major indices showing mixed movements, including the Dow up about 0.21%, Nasdaq up about 1%, and S&P 500 up about 0.61% [1] - Bitcoin has seen a significant decline, down approximately 24% over the last two months, with a recent drop of about 6% in the past week [1][3] - The total capitalization of the crypto market has fallen by about 24% since its October peak, equating to over $1 trillion in value lost [1] Consumer Spending and Retail - The National Retail Federation anticipates that consumers will spend over $1 trillion this holiday season, marking a strong consumer sentiment [2] - Recent retail earnings reports have shown mixed results, with companies like Gap and TJ Maxx performing well, while Home Depot's results were less favorable [2] - High-income consumers are driving spending, while low-income consumers remain under pressure [2] AI and Technology Sector - Goldman Sachs suggests that the narrative around AI capital expenditures (capex) is crucial for market stability, with expectations of continued growth in technology demand [2][3] - Nvidia's recent performance is seen as a key indicator for the tech sector, with any weakness potentially impacting broader market sentiment [2][3] Cryptocurrency Insights - Institutional investors are currently sidelined, with Bitcoin ETF outflows reaching $3.5 billion in November, the largest since February [4] - The correlation between Bitcoin and the NASDAQ suggests that stabilization in crypto prices may be necessary for broader market recovery [5][6] - Analysts express caution regarding a V-shaped recovery for Bitcoin, citing the need for more dovish Fed commentary and institutional participation [4][5] Company-Specific Developments - Moderna has faced significant stock price declines, down 43% this year, and is currently the most shorted stock in the S&P 500, with 20% of shares shorted [28][30] - Pfizer is diversifying its business into weight loss drugs and other areas, contrasting with Moderna's struggles to adapt post-COVID vaccine demand [29][30] - Analysts highlight the need for Moderna to diversify its product offerings beyond COVID vaccines to regain investor confidence [31][35]

Core Insights - Home Depot's recent performance is closely tied to the Federal Reserve's potential interest rate cuts in the upcoming meeting [1] - The company reported a slight sales beat, but earnings and same-store sales were below expectations, leading to a 6% drop in stock price [1] - Home Depot has revised its full-year forecasts downward for both comparable sales growth and earnings [1] Company Overview - Home Depot, Inc. is a home improvement retailer that offers tools, building materials, decor, installation, and equipment rental services [2] Investment Perspective - While Home Depot shows potential as an investment, certain AI stocks are considered to have greater upside potential and lower downside risk [3]

Investment Rating - Industry rating: Recommended [5] Core Insights - Home Depot's FY25Q3 net sales reached $41.35 billion, a year-on-year increase of 2.8%, with comparable sales up 0.2% [1][11] - Lowe's FY25Q3 net sales were $20.81 billion, reflecting a 3.0% year-on-year growth, driven by acquisitions [2][13] - Both companies are experiencing stable demand from professional customers, with Home Depot's professional sales up 4.2% and Lowe's online sales up 11.4% [1][2][13] Summary by Sections Home Depot - Financial Data: FY25Q3 net sales of $41.35 billion, with comparable sales up 0.2% and net profit of $3.6 billion, down 1.3% year-on-year [1][11] - Product Sales Performance: 9 out of 16 product categories showed positive growth, with an average transaction value increase of 1.8% and a transaction volume decrease of 1.6% [1][11] - Full Year Outlook: FY25 total sales expected to grow by 3.0%, with GMS business contributing approximately $2 billion in incremental sales [12] Lowe's - Financial Data: FY25Q3 net sales of $20.81 billion, with comparable sales up 0.4% and net profit of $1.6 billion, down 5.7% year-on-year [2][13] - Category Performance: 10 out of 14 product categories achieved same-store sales growth, with strong performance in appliances and tools [2][13] - Full Year Guidance: FY25 total sales forecast raised to $86 billion, with comparable sales expected to remain flat [2][13]

Core Viewpoint - Home Depot is experiencing one of its worst performances relative to the S&P 500 in years, indicating a significant slowdown in the housing market and consumer spending [1][2]. Group 1: Company Performance - Home Depot's stock is near a 52-week low following disappointing third-quarter fiscal 2025 results and a revised full-year guidance [3]. - The company anticipates a slight increase in comparable 52-week sales growth but a 5% decline in adjusted diluted earnings per share (EPS) [4]. - Home Depot's diluted EPS for fiscal 2023 was $15.25, reflecting a 9.5% decline from $16.69 in fiscal 2022, marking over three years of falling earnings [5]. Group 2: Market Conditions - CEO Ted Decker noted ongoing consumer uncertainty and a weak housing market, which are negatively impacting home improvement demand [6]. - There is a notable bifurcation in the economy, with strong stock market performance contrasting with struggles in the consumer-facing sector [7][8]. - Management's tone has shifted from cautiously optimistic to serious as the slowdown in housing and consumer spending intensifies [9]. Group 3: Investment Considerations - Home Depot's stock has declined 14% year-to-date and has only increased 24% over the last five years, compared to an 86.2% gain in the S&P 500 [11]. - Despite three consecutive years of lower adjusted earnings, there are still reasons for long-term optimism regarding Home Depot's market share and valuation [12][13]. - The company has raised its dividend for 16 consecutive years, with the latest increase being 2.2%, the smallest since 2010, resulting in a current yield of 2.7% [14]. Group 4: Long-term Outlook - Home Depot is viewed as a strong company amidst a significant industry slowdown, with a recommendation for long-term investors to consider the stock for its potential as a blue-chip dividend investment [15][16].