Here’s How Much a $1,000 Investment in Home Depot Stock 10 Years Ago Would Be Worth Today

04/05/2024

People shopping at The Home Depot in San Francisco bay area

Home Depot was a poster-child stock of the pandemic, blowing away expectations in 2020 and 2021. With nowhere to go and little to do, Americans quarantining at home worked on, well, their homes. Which meant buying home improvement supplies, a sector that Home Depot dominates along with just one major competitor (Lowe’s).

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But if you zoom out to look at the last decade, how did Home Depot perform? Was it just a pandemic darling, a flash in the pan? Or has it actually delivered strong long-term returns for investors?

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$1,000 Invested in Home Depot 10 Years Ago

A decade ago, Home Depot’s stock closed at $79.40. At the time of this writing, it’s trading at $331.97.

That means it’s exploded by over 318% over the last ten years. That comes to an average annual return of 31.8%, ignoring compounding (if you want to include compounding when you calculate returns, use an internal rate of return calculator).

If you invested $1,000 a decade ago in Home Depot stock, you’d own around 12.6 shares. Today those shares would be worth around $4,181.

Home Depot also pays a hefty dividend. Currently, the stock pays a dividend yield of 2.71%, and it’s hovered in the 2-2.5% range for most of the last decade.

The S&P 500 has enjoyed a good run over the last decade as well, but nowhere near Home Depot. An index fund that tracks the S&P 500, SPY, has risen from $188.06 to $500.35 over the last ten years — a jump of 166.06%. It has paid a dividend yield in the 1.5-2.2% range over that time.

Home Depot Outlook

Yes, you’d be sitting pretty as a Home Depot investor, between the impressive price growth and solid dividend yield over the last decade. Which is great for investors who actually did invest $1,000 in Home Depot a decade ago, but what does the future look like for Home Depot stock?

The consensus among 25 stock analysts is a “Buy” recommendation. These analysts average a 12-month price target of $376.60, or a 13.4% increase from today’s pricing.

Why? Despite the gridlock in the housing market, the US still suffers from a housing shortage. Buyers often gravitate toward existing homes even when they have the choice of new construction. Existing homes that require steady maintenance and repairs, and occasional large renovation projects.

Even that housing gridlock, caused by would-be sellers staying put to keep their low fixed-interest mortgages, plays to Home Depot’s advantage. Rather than selling like they might otherwise, some homeowners opt to upgrade their existing homes.

Learn More: How I Made $1,000 a Month in Dividend Stocks

In other words, Home Depot stands to gain, rather than lose, in today’s quirky housing market.

$1,000 Invested in Home Depot 10 Years Ago

Home Depot Outlook

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