Would you like to own a slice of one of the best businesses in the world? Want to benefit from a massive trend playing out right now in the US? Like the idea of collecting a market-beating dividend that just got raised by 10%? Could this be one of the best stocks to buy now?

Best of all, the stock looks undervalued right now. Price is what you pay. But value is what you get. Why’s that important? Because buying a dividend growth stock when it’s undervalued should provide a higher yield, greater long-term total return potential, and reduced risk. With this in mind, I want to tell you about an opportunity I recently came across shares of Home Depot Inc., possibly one of the best dividend stocks to buy now, which appear to be trading at a significant discount today...

Home Depot Inc. - stock ticker HD - is the world's largest home improvement retailer.

A huge trend has been playing out for about a year now in the US. People have been moving out of smaller, urban apartments in favor of larger, suburban homes. Undoubtedly, the pandemic and related lockdowns caused this trend to explode. Large cities like NYC effectively-being abruptly and indefinitely shut down lit a fire under people and strongly motivated them to move on. But I'd argue there was already plenty of kindling there before the pandemic. To that point, low-interest rates only served to add more fuel to the fire. Cheap money has made the purchasing of a house more affordable and enticing. All of this plays right into the hands of Home Depot.

As the world's largest home improvement retailer, they will directly benefit from more homeownership. After all, all of those houses have to be maintained and repaired over time. And that's before getting into improvement projects. All of this will almost certainly translate into more sales, higher profits, and bigger dividends. As it sits, Home Depot has increased its dividend for 12 consecutive years. In fact, they just announced a 10% dividend increase near the end of February.

CFRA rates HD as a 4-star "BUY", with a 12-month target price of $300.00.

Here's the bottom line, guys: Home Depot Inc. is a high-quality company across the board. And they're positioned to take advantage of the current US housing trend. With a market-beating yield, double-digit dividend growth, a moderate payout ratio, more than a decade of consistent dividend growth, and the potential that shares are 13% undervalued, this is a very compelling long-term idea for dividend investing growth investors and possibly one of the best stocks to invest in 2021.

Video Length: 00:12:12