How does the Home Depot employee stock purchase plan work?

Asked By: Amaya Valhondo | Last Updated: 11th May, 2020
Category: personal finance options
4.7/5 (1,217 Views . 24 Votes)
The Home Depot Direct Stock Purchase Plan (DSPP) enables you to invest a minimum amount in Home Depot stock and build your stock ownership over time. You always have control of your shares. You may withdraw your DSPP holdings of Home Depot stock at any time, or may ask the program administrator to sell your shares.

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Also know, does Home Depot offer stock options to employees?

The purpose of The Home Depot, Inc. Amended and Restated Employee Stock Purchase Plan is to provide Employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company on a payroll or other compensation deduction basis.

Beside above, how do direct stock purchase plans work? Direct stock purchase plans (or DSPP's for short) are plans that allows you to buy stock directly from a company or their stock transfer agent – often times without a fee – and sometimes at a discount. You can even set up a DSPP to automatically purchase and then reinvest through a dividend reinvestment plan (or DRIP).

Similarly, it is asked, is Home Depot stock a buy?

However, investors should see the results of the investments over the long-term. Overall, Home Depot's growth, profitability, dividend sustainability, and share price valuation make Home Depot a good investment into 2020, and a buy at the current valuation.

Who owns controlling interest in Home Depot?

Top 10 Owners of Home Depot Inc

Stockholder Stake Shares owned
The Vanguard Group, Inc. 7.52% 81,984,450
SSgA Funds Management, Inc. 4.78% 52,159,736
BlackRock Fund Advisors 4.47% 48,812,912
Capital Research & Management Co. 3.61% 39,376,820

29 Related Question Answers Found

Is Home Depot employee owned?

MRO company Interline Brands (now The Home Depot Pro) is also owned by The Home Depot, with 70 distribution centers across the United States.

The Home Depot.
The Home Depot corporate headquarters outside Atlanta
Total equity US$1.87 billion (2018)
Number of employees 400,000 (2018)
Subsidiaries The Home Depot Pro

What is Espp deduction?

In the United States, an employee stock purchase plan (ESPP) is a tax-efficient means by which employees of a corporation can purchase the corporation's stock, often at a discount. Employees contribute to the plan through payroll deductions, which build up between the offering date and the purchase date.

How can I buy Home Depot stock?

Purchasing Stock
The minimum initial investment is $500. If you already own Home Depot stock, you may invest cash dividends and optional cash purchases in additional shares of Company stock. You may invest up to $250,000 each year through DSPP.

How high will Home Depot stock go?

Home Depot's (NYSE: HD) stock price has increased more than 60% from $134/share in August 2016 to $220/share in August 2019. The increase was primarily driven by a continuous increase in Total Revenue, Net Income margin, and the buyback of shares. Revenue growth and margin increase are expected to continue in 2019.

Why is HD stock dropping?


Shares of construction goods giant Home Depot are dropping in premarket trading after the company cut full-year sales growth guidance. That's good news for investors. Home Depot (ticker: HD) reported $2.53 in per-share earnings for the third quarter. Wall Street predicted $2.52 a share.

Is Home Depot a good long term investment?

“[W]e believe Home Depot remains one of the best long-term stories given its initiatives, the duopolistic/Amazon-resistant nature of the industry, and operating leverage/EPS growth that accelerates in 2021 and beyond.,” analysts said.

What companies can I buy stock from directly?

A direct stock purchase plan allows you to buy shares of a company through its transfer agent instead of through a broker.

Listed below are five well-known companies that have the most active direct stock purchase plans:
  • The Coca-Cola Company.
  • Exxon Mobil.
  • Johnson & Johnson.
  • Walmart.
  • Altria Group.

Is HD a good buy?

Shares of home-improvement retailer Home Depot (NYSE:HD) are down about 10% in the last three months, making it a good time for investors to consider whether this industry leader is worth buying. After all, the company has seen consistently strong growth in revenue, earnings per share, and comparable-store sales.

Will Home Depot beat earnings?

For the most recent quarter, Home Depot was expected to post earnings of $3.07 per share, but it reported $3.17 per share instead, representing a surprise of 3.26%. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.

Can you buy stock straight from company?


Direct Investment Plans: Buying Stock Directly from the Company. Many companies allow you to buy or sell shares directly through a direct stock plan (DSP). Some companies require that you already own stock in the company or are employed by the company before you may participate in their direct stock plans.

Is HD a buy or sell?

Barchart Opinion
Composite Indicator
TrendSpotter Sell
150 Day Moving Average Sell
200 Day Moving Average Sell
100 - 200 Day MACD Oscillator Buy

How do you purchase stocks?

How to Buy Stocks
  1. Step 1: Open an online brokerage account. Wondering where to buy stocks?
  2. Step 2: Select the stocks you want to buy.
  3. Step 3: Decide how many shares to buy.
  4. Step 4: Choose your stock order type.
  5. Step 5: Optimize your stock portfolio.

Are DRIPs worth it?

But bottom line, reinvesting dividends through a broker or by signing up for DRIP plans directly through the dividend-paying companies, is a surprisingly powerful tool to passively improve your investment returns. So yes, DRIP plans are worth it, as long as they fit with your investing goals.

Can I buy stocks without a broker?

Selling stocks without a broker is tough because most people buy stocks through brokerage accounts. Generally, you cannot get access to an exchange without a brokerage account. Thus, it is impossible to put stocks before would-be buyers without such an account.

Can I buy Walmart stock direct?


Stock Purchase
You can purchase shares of Walmart stock through Computershare, our stock transfer agent, or through any authorized brokerage firm. To receive information about our Direct Stock Purchase Plan, or to purchase stock, visit Computershare or call 1-800-438-6278.

Can I buy stock directly from Coca Cola?

Shares can be purchased through a Direct Stock Purchase and Dividend Reinvestment Plan sponsored and administered by Computershare Trust Company, N.A. Details about the Computershare Investment Plan, including any fees associated with the Plan, can be viewed and printed from Computershare's website.

Are Direct Stock Purchase Plans good?

For some, investing in DSPPs still is a good option. For the small investor who is ready to buy individual shares of a particular company to add to his portfolio to hold for the long term, a direct stock purchase plan may be a thrifty way to do so.