If You Invested $1,000 In Home Depot 10 Years Ago, Here's How Rich You'd Be Today
Many people are unaware that the United States is experiencing a housing shortage today. Homebuyers often prefer to invest in already-built homes versus new home builds. These existing homes constantly need upkeep, repairs, and maintenance, along with sometimes big renovations.
Atlanta, Georgia-based The Home Depot has all of these needs covered and so benefits from the continuous demand. Founded in 1978, The Home Depot turned into a huge winner of the pandemic era, smashing analyst expectations in both 2020 and 2021. Americans who were enduring quarantines had more time at home. They found themselves purchasing home improvement supplies for projects around the house, the sector that The Home Depot dominates with only one significant competitor in Lowe's.
Had you understood all of this a decade ago, you would have purchased Home Depot (NYSE: HD) stock. Investors in the home improvement supplies behemoth have been substantially rewarded for their patience. If you sunk $1,000 into HD in January of 2015, today you would be sitting on over $3,923 plus stock dividends.
The secrets of The Home Depot, Inc. success
The Home Depot, Inc. competes as the dominant home improvement retailer in the U.S. and also increasingly on an international level in both Mexico and Canada. Among its products are sundry building supplies, garden and lawn items, and home improvement products. It also offers products for repair, maintenance, and operations of facilities, and it does so using major name brands as well as in-store labels.
The Home Depot found a second calling in installation services. The company handles water heaters, flooring, garage doors, baths, cabinets, countertops, furnaces, sheds, windows, and central air conditioning installation. Another niche market The Home Depot became involved in is equipment and tool rental services. These serve not only homeowners, but also general contractors, handymen, property managers, building service contractors, maintenance professionals, and tradesmen. Among the extensive list of tradesmen rental clientele are professionals like plumbers, painters, and electricians.
10-year gains from Home Depot stock and dividends are substantial returns
The Home Depot has expanded and grown significantly over the past decade. Today it has an extensive presence online at sites including HomeDepot.com, JustBlinds.com, and HDSupply for repair, maintenance, and operations products and services. Thanks to continuing leadership in the industry, 25 analysts had a consensus "buy" recommendation on the stock recently. It means that The Home Depot won't become like another furniture chain closing hundreds of locations.
If you had the foresight to buy into The Home Depot a decade ago you have been extremely well rewarded by this stable staples stock. HD opened on the NYSE in January of 2015 at $105.16 per share. It recently closed at $413.00 per share on January 21, 2025. You could have bought 9.5 HD shares with your $1,000 stake in 2015 that would be worth over $3,923.50 today .
Besides this gain of over 292% in share price appreciation, The Home Depot has paid out significant and reliable dividends over the decade. Shareholders are also up 25% in dividends that HD has paid. This brings your 10-year gains for HD stock to over 317% now. Compare this to gains from the SPY S&P 500 index fund of only around 166% in the same time, per Yahoo! Finance.