Stock Market Today: Home Depot’s Dividend Jump and T-Mobile’s New Customers

Why Home Depot, T-Mobile, and Domino's Pizza stocks are on the move today.

Feb 25, 2014 at 9:00AM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Investors can expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has lost a slim six points in pre-market trading. World markets traded near six-year highs overnight following yesterday's gains on Wall Street that saw the S&P 500 close just a hair below a record high. 

Next up on the economic calendar is a new report from the Conference Board, which should show that consumers are feeling better about the economy. The confidence reading is expected to remain near the five-month high set in January, with an overall reading of 80 out of 100 for February. That report is due out at 10 a.m EST. 

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Home Depot (NYSE:HD), T-Mobile (NASDAQ:TMUS), and Domino's Pizza (NYSE:DPZ).

Home Depot this morning posted strong earnings results for its fiscal fourth quarter. Yes, revenue dipped by 3% to $17.7 billion, but only because the quarter included one less sales week than the year-ago period. The retailer's comparable-store sales, which paint a clearer picture of revenue trends, came in at a solid 4.4% rise. Profit also improved to $0.73 a share, ahead of the $0.71 that analysts had expected. Home Depot took advantage of that stellar financial position by hiking its dividend to $0.47 a share, 21% above last year's quarterly payout. The stock is up 2.2% in pre-market trading.

T-Mobile today announced that revenue grew to $6.8 billion in the fourth quarter as the company added 1.6 million customers across its wireless platforms. That result was below the roughly $7 billion that Wall Street projected. Still, T-Mobile booked an operating loss of $19 million, or $0.03 a share, which was an improvement over last quarter's $36 million loss. The company's improving subscriber trends gave it confidence to project a strong 2014, with annual operating cash flow expected to grow from $5.3 billion in 2013 to as much as $6 billion this year. The stock is down 1% in pre-market trading.

Finally, Domino's Pizza today booked a 5% improvement in fourth-quarter sales, to $566 million. Profit leapt by 21% to reach $0.78 a share, also slightly higher than Wall Street expected. The pizza chain benefited from a solid 3.7% boost in same-store sales in the U.S., but also booked a 7% jump in its international business -- marking its 80th consecutive quarter of increases abroad. The stock is up 1.8% in pre-market trading.

It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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