Top 2 shares you can buy now if you want decades of passive income

Both companies continue to undertake to pay dividends.
Payment of dividends remains one of the best priorities for Home Depot capital distribution.
Target recently increased its dividend with a series of 54 years.
10 stock we like more than Home Depot ›

Many investors are thinking about the potential of shares. But those who want to get normal income can also find shares to invest. In fact, this is one way to earn passive income.

Of course, you still have to do your homework. This is especially true when you have an investment time horizon measured over decades. These two stocks are increasing benefits year after year and higher dividend revenue than a market by measuring under S&P 500 arrow.

Promotions also offer potential prices, making them ideal for patient investors seeking attractive overall returns.

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Home depot (NYSE: HD) Produces the most sales among home improvement retailers. This ublown presence, along with attractive prices, makes it a popular trading venue for individuals and professional contractors.

Home Depot sales have been sluggish lately. But this is because homeowners have postponed major projects due to factors such as high interest rates, which increased borrowing costs and inflation, eating their expenses.

The fiscal fiscal sales of the same stores in the second quarter increased by 1%, although foreign currency translations were deprived of 0.4 percentage points. The traffic was deprived of 0.4 percentage points and the costs increased by 1.4 percentage points. The period ended on August 3.

I am convinced that homeowners will do a great renovation because of the need or desire to change their homes. It’s just a matter of time. When they do it, they seem to be going to Home Depot, given its convenience and price.

Meanwhile, the payment of dividends remains one of the highest priorities for the distribution of management capital. This occurs immediately after investing in growth initiatives.

Since 2010 The Directors’ Board increased the benefit each year. Even during the challenges, the Home Depot retained its quarter -dividend constant.

The company currently has many free cash flow (FCF) to support dividends. In the first half of the year, Home Depot earned $ 7.2 billion FCF compared to $ 4.6 billion in dividends.

Share dividend yields are 2.3%, more than 1 percentage point higher than S&P 500%1.2%.

The target (NYSE: TGT) It has become a popular trading venue for consumers looking for major items and differentiated goods sold exclusively in its locations. This has long proved a successful formula, but over the past few years, the company has been influenced by several factors.

These include stubborn prices that have hurt customer opportunities to release Target, and most recently boycott, when management decided to reduce diversity, justice and inclusion initiatives. However, when the inflation cycle is over, buyers will undoubtedly increase costs in target stores. The company also met with community leaders to resolve certain issues that encouraged boycotts.

The Target fiscal second -quarter compositions decreased by 1.9%, which ended on August 2. Lower traffic amounted to a decline in 1.3 percentage points and reduced costs were responsible for the balance.

Target also announced that he would encourage the chief operational officer Michael Fiddelke to the CEO next February. He promises urgent steps to speed up sales and profit growth.

Meanwhile, Target remains committed to increasing dividends. June She announced that the quarterly payment increased by $ 1.8% to $ 1.14. The company since 1967 Paid dividends and raised them for 54 years. This is done by the King of Target dividends. With a 52% payment ratio, the company can easily afford higher payments.

With the new dividend rate, Target stocks give about 4.6%.

Before buying Home Depot, consider this:

Motley Fool Stock Advisor A team of analysts just found what they think is 10 best stocks Investors buy now … and Home Depot was not one of them. 10 stocks that reduced the incision can return the monster in the coming years.

Consider when Netflix This list consisted of 2004. December 17th … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 649,657!* Or when Nvidia Made this list in 2005. April 15 … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 1,090 993!*

Now it is worth mentioning Share advisor The average return is 1 057%-S&P 500, compared to 185 percent. Share advisor;

See. 10 stocks »

*The stock advisor returns from 2025. August 18

Lawrence Rothman, CFA, occupies a Target position. The Motley fool is a position and recommends Home Depot and Target. The Motley fool has a disclosure policy.

2 Top shares you can buy now if you want decades of passive income originally announced by The Motley Fool

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