How Much Home Depot Stock Do You Need for $500 in Annual Dividends? A Motley Fool Analysis.
Home Depot (NYSE: HD) has been a fantastic investment for long-term investors, and aside from price appreciation, it pays an attractive dividend. The dividend yields 2.6% at the current price. Let's see how much you'd have to buy to get $500 in annual dividends.
The price is down, but the yield is up
Home Depot stock is down 10% this year as the company faces economic pressure. Although it's the largest home improvement company in the world and demonstrates resilience, it's operating in a difficult real estate market. Home prices are still rising, mortgage rates are high, and homes sold are declining. That trickles down to all sorts of companies associated with real estate, including Home Depot.
Although sales increased 9.4% year over year in the 2025 fiscal first quarter (ended May 4), comparable sales were down a drop, implying that growth is only coming from opening new stores. Earnings per share also dropped in the quarter, from $3.63 last year to $3.45 this year.
Investors who buy today are betting on a resurgence in real estate and a rebound for Home Depot, which is the likely scenario; however, it's unclear when that could happen.
Current investors are also benefiting from the reliable passive income. Home Depot has raised the dividend annually for the past 15 years, and it has increased by 290% over the last 10 years.
To make $500 in annual dividends from Home Depot stock at today's price, you'd need to own 218 shares, which would cost you $76,300. If you have that much to invest as part of a well-diversified portfolio, Home Depot could be an excellent value stock to buy. However, investors should ensure that they have a diversified portfolio of dividend stocks for optimal passive income.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.
Here's How Many Shares of Home Depot Stock You Should Own to Get $500 in Yearly Dividends was originally published by The Motley Fool.
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