ARCO vs HD: Which Is the Better Dividend Stock?
As of Oct 18, 2026, ARCO and HD are closely matched. ARCO offers the higher yield at 3.52%, HD has the higher dividend-safety score, and ARCO looks like the better value (its fair-value estimate is 1% above its share price).
Key facts: ARCO vs HD
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Arcos Dorados Holdings Inc. (ARCO) has the higher forward dividend yield at 3.52%, versus 3.01% for The Home Depot, Inc. (HD).
- As of Oct 18, 2026, SmarterDividends grades ARCO's dividend safety C (60/100) and HD's A (85/100).
- By SmarterDividends' count as of Oct 18, 2026, ARCO has raised its dividend for 0 consecutive years and HD for 16.
- As of Oct 18, 2026, ARCO pays out 21% of its earnings as dividends and HD pays out 65%.
- As of Oct 18, 2026, ARCO's fair-value estimate is 1% above its share price and HD's fair-value estimate is 14% below its share price, so ARCO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ARCO vs HD: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/arco-vs-hd
| Metric | ARCO | HD |
|---|---|---|
| Forward yield | 3.52% | 3.01% |
| Annual dividend | $0.28 | $9.32 |
| Payout ratio | 21% | 65% |
| Years of growth | 0 yr | 16 yr |
| 5-yr dividend growth | 3.7% | 8.9% |
| 5-yr total return | 62% | -23% |
| Dividend safety score | 60 (C) | 85 (A) |
| Fair value estimate | $8.03 | $266.02 |
| Upside to fair value | +1% | -14% |
| Frequency | quarterly | quarterly |
| Market cap | $1.7B | $308.9B |
| P/E ratio | 6.5 | 21.7 |
Higher yield
ARCO
3.52%
Safer dividend
HD
Grade A
Faster growth
HD
8.9%
Better value
ARCO
+1% upside
ARCO vs HD — FAQ
Is ARCO or HD a better dividend stock?
ARCO and HD are closely matched. ARCO has the higher yield; HD scores better on safety.
Which has a higher dividend yield, ARCO or HD?
ARCO has the higher forward dividend yield at 3.52%, versus 3.01% for HD.
Is ARCO or HD safer?
HD has the higher dividend-safety score (85/100 vs 60/100), reflecting stronger payout coverage and dividend-growth history.
Is ARCO or HD better value right now?
As of Oct 18, 2026, ARCO looks like the better value: its fair-value estimate is 1% above its share price (fairly valued). 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.