SmarterDividends

HBB vs HD: Which Is the Better Dividend Stock?

As of September 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 3.11%, HBB has the higher dividend-safety score, and HD trades at the larger discount to fair value (-16%).

MetricHBBHD
Forward yield1.55%3.11%
Annual dividend$0.49$9.32
Payout ratio11%65%
Years of growth7 yr16 yr
5-yr dividend growth5.1%8.9%
5-yr total return111%-19%
Dividend safety score85 (A)85 (A)
Fair value estimate$16.84$252.65
Upside to fair value-47%-16%
Frequencyquarterlyquarterly
Market cap$427.9M$296.5B
P/E ratio7.520.8

Higher yield

HD

3.11%

Safer dividend

HBB

Grade A

Faster growth

HD

8.9%

Better value

HD

-16% upside

HBB vs HD — FAQ

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