The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics from across the investing world.
Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they take a closer look at Home Depot. This company is up 23% so far in 2012 compared with just a 3% or so gain for the Dow average as a whole. Apparently, the market thinks the housing market is turning around -- slowly, but surely. John and David originally believed that Home Depot would outperform the market over the next five years, and they still stand by that call. Shares of the home improvement giant have been rising lately with news that the housing market appears to be turning around. Competitor Lowe's has been on a nice climb, too. Home Depot continues to invest time and effort into lowering its costs. If the housing recovery strengthens, and Home Depot continues to increase its dividend and repurchase shares, John and David think it will handily outperform the market over time.
Home Depot has performed well lately, and it offers a nice dividend, too. If you'd like to learn about additional companies that pay outstanding dividend yields, The Motley Fool has compiled a special free report outlining our top nine dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.