Why Home Depot Stock Is a Popular Holding Among These Top Dividend ETFs

Core Viewpoint - Home Depot is a highly favored stock among leading dividend ETFs due to its strong dividend yield, consistent dividend payments, and solid financial performance [1][10]. Group 1: Home Depot's Position in Dividend ETFs - Home Depot is a top holding in several major dividend ETFs, including Vanguard Dividend Appreciation ETF, Vanguard High Dividend Yield ETF, and Schwab U.S. Dividend Equity ETF [1][10]. - In the Vanguard Dividend Appreciation ETF, Home Depot ranks ninth, accounting for 2.1% of its assets [2]. - In the Vanguard High Dividend Yield ETF, Home Depot is the fourth largest holding, representing 2.2% of its assets [4]. - In the Schwab U.S. Dividend Equity ETF, Home Depot ranks third, making up 4.4% of its assets [6]. Group 2: Dividend Yield and Growth - Home Depot offers a higher-yielding dividend of 2.2%, making it attractive for yield-focused ETFs [7]. - The company has a strong track record of dividend payments, having made over 150 consecutive quarterly payments and increasing its dividend for 15 straight years, including a 7.7% increase earlier this year [7]. Group 3: Financial Performance and Growth Potential - Home Depot generated over $15 billion in net cash from operating activities in the first nine months of the year, significantly exceeding its dividend outlay of $6.7 billion [8]. - The company has utilized excess cash for capital expenditures and maintains a strong balance sheet with an A-rating credit [8]. - Home Depot's acquisition of SRS Distribution for $18.3 billion expanded its market opportunity by $50 billion, bringing its total market opportunity to over $1 trillion [9]. - With an estimated market share of 15%, Home Depot has substantial growth potential through existing store sales and retail expansion [9].