SmarterDividends

BABAF vs HD: Which Is the Better Dividend Stock?

As of August 2026, HD (The Home Depot, Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. HD offers the higher yield at 2.74%, HD has the higher dividend-safety score, and BABAF trades at the larger discount to fair value (+7%).

MetricBABAFHD
Forward yield0.91%2.74%
Annual dividend$0.13$9.32
Payout ratio17%66%
Years of growth2 yr16 yr
5-yr dividend growth8.9%
5-yr total return-32%2%
Dividend safety score76 (B)84 (A)
Fair value estimate$15.43$255.87
Upside to fair value+7%-23%
Frequencyannualquarterly
Market cap$301.3B$347.2B
P/E ratio19.424.1

Higher yield

HD

2.74%

Safer dividend

HD

Grade A

Faster growth

HD

8.9%

Better value

BABAF

+7% upside

BABAF vs HD — FAQ

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