Company Performance - Home Depot generated $166 billion in sales over the past 12 months, nearly double that of its closest competitor, Lowe's [1] - In the last 12 months, shareholders experienced a loss of 17% in capital, while the S&P 500 produced a total return of 14% [3] - Over the past three and five years, Home Depot generated total returns of 17% and 51%, respectively, both of which lag behind the S&P 500 [4] Dividend and Market Position - Home Depot pays a quarterly dividend of $2.30, resulting in a current dividend yield of 2.65%, which is attractive to income investors [4] - The company has a market capitalization of $356 billion and a gross margin of 31.40% [6] Industry Context - The home improvement sector has a total addressable market worth $1 trillion, with Home Depot capturing about 16% of this market [7] - The median age of houses is approximately 40 years, indicating a sustained demand for upgrades and renovations [7] - Home Depot has a strong brand presence and unmatched inventory availability, giving it a competitive advantage over smaller rivals [6]