The Real Expert

Home Depot Continues to Impress on Dividends

There is absolutely no justification for a dividend increase, other than to keep investors in the stock - a stock that is dying. HD continues to be in trouble. It has lost much of its customer base due to many years of terrible service and now it faces the effects of the correction in the largest real estate bubble in US history.

I won't blame you for the title "HD Continues to Impress on Dividends" as most likely the editors made this stupid title up. They usually alter author titles to create buzz and are irresponsible in this regard. This behavior as well as the selective censorship they practice is why I no longer submit articles to Seeking Alpha.

If you think that the dividend increase is impressive then you have not considered the lack of real basis for the increase. If you stay in this stock or buy it, it will be wasted money.

If you are looking for dividends with limited downside, go to the pharmas. HD has a lot of downside while the pharmas have for the most part bottomed out. Plus the real estate correction will last many years while Medicare Part D is just now starting to kick in, promising some help to pharmas.