AEO vs HD: Which Is the Better Dividend Stock?
As of Oct 18, 2026, HD (The Home Depot, Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. HD offers the higher yield at 3.01%, HD has the higher dividend-safety score, and AEO looks like the better value (its fair-value estimate is 50% above its share price).
Key facts: AEO vs HD
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, The Home Depot, Inc. (HD) has the higher forward dividend yield at 3.01%, versus 2.78% for American Eagle Outfitters, Inc. (AEO).
- As of Oct 18, 2026, SmarterDividends grades AEO's dividend safety C (62/100) and HD's A (85/100).
- By SmarterDividends' count as of Oct 18, 2026, AEO has raised its dividend for 0 consecutive years and HD for 16.
- As of Oct 18, 2026, AEO pays out 26% of its earnings as dividends and HD pays out 65%.
- As of Oct 18, 2026, AEO's fair-value estimate is 50% above its share price and HD's fair-value estimate is 14% below its share price, so AEO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AEO vs HD: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/aeo-vs-hd
| Metric | AEO | HD |
|---|---|---|
| Forward yield | 2.78% | 3.01% |
| Annual dividend | $0.50 | $9.32 |
| Payout ratio | 26% | 65% |
| Years of growth | 0 yr | 16 yr |
| 5-yr dividend growth | -2.0% | 8.9% |
| 5-yr total return | -31% | -23% |
| Dividend safety score | 62 (C) | 85 (A) |
| Fair value estimate | $27.03 | $266.02 |
| Upside to fair value | +50% | -14% |
| Frequency | quarterly | quarterly |
| Market cap | $3.0B | $308.9B |
| P/E ratio | 9.2 | 21.7 |
Higher yield
HD
3.01%
Safer dividend
HD
Grade A
Faster growth
HD
8.9%
Better value
AEO
+50% upside
AEO vs HD — FAQ
Is AEO or HD a better dividend stock?
On the data, HD wins more head-to-head categories (6 vs 2). HD offers the higher yield (3.01%), while HD has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, AEO or HD?
HD has the higher forward dividend yield at 3.01%, versus 2.78% for AEO.
Is AEO or HD safer?
HD has the higher dividend-safety score (85/100 vs 62/100), reflecting stronger payout coverage and dividend-growth history.
Is AEO or HD better value right now?
As of Oct 18, 2026, AEO looks like the better value: its fair-value estimate is 50% above its share price (undervalued). For HD, its fair-value estimate is 14% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.