SmarterDividends

CAKE 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 8 head-to-head metrics. HD offers the higher yield at 2.62%, HD has the higher dividend-safety score, and CAKE trades at the larger discount to fair value (+22%).

MetricCAKEHD
Forward yield1.12%2.62%
Annual dividend$1.20$9.32
Payout ratio31%66%
Years of growth0 yr16 yr
5-yr dividend growth-5.6%8.9%
5-yr total return129%9%
Dividend safety score58 (C)85 (A)
Fair value estimate$130.23$255.87
Upside to fair value+22%-28%
Frequencyquarterlyquarterly
Market cap$5.3B$354.6B
P/E ratio29.025.3

Higher yield

HD

2.62%

Safer dividend

HD

Grade A

Faster growth

HD

8.9%

Better value

CAKE

+22% upside

CAKE vs HD — FAQ

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