Home Depot Inc. said Tuesday it will raise its quarterly dividend by 10.0%, to $2.09 a share from $1.90 a share.
The home improvement retailer said shareholders of record on March 9 will be paid the dividend on March 23.
Based on Home Depot’s current stock price HD, -5.88%, the new annual dividend rate of $8.36 a share, implies a dividend yield of 2.78%. That compares with the current dividend yield for rival Lowe’s Companies Inc.’s stock LOW, -5.14% of 2.08% and the implied yield for the S&P 500 index SPX, -1.63% of 1.70%.
Home Depot’s stock took a 5.4% in morning trading, in the wake of a disappointing quarterly earnings report and full-year guidance.
The company said the dividend payment in March will mark the 144th straight quarter it has paid a cash dividend. In 2022, the company paid out $7.79 billion in dividends to its shareholders, and spent $6.70 billion on share repurchases.
The stock has lost 13.3% over the past 12 months, while the Consumer Discretionary Select Sector SPDR exchange-traded fund XLY, -2.70% has tumbled 18.5% and the S&P 500 has declined 7.7%.
This article was originally published by Marketwatch.com. Read the original article here.