Published on 25 May 2024 on Simply Wall St. via Yahoo Finance

Home Depot (NYSE:HD) Could Be A Buy For Its Upcoming Dividend

It looks like The Home Depot, Inc. (NYSE:HD) is about to go ex-dividend in the next four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Therefore, if you purchase Home Depot's shares on or after the 30th of May, you won't be eligible to receive the dividend, when it is paid on the 13th of June.

The company's next dividend payment will be US$2.25 per share, on the back of last year when the company paid a total of US$9.00 to shareholders. Calculating the last year's worth of payments shows that Home Depot has a trailing yield of 2.8% on the current share price of US$325.10. If you buy this business for its dividend, you should have an idea of whether Home Depot's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.