SmarterDividends

HD vs IBP: Which Is the Better Dividend Stock?

As of Oct 18, 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 3.01%, HD has the higher dividend-safety score, and HD looks like the better value (its fair-value estimate is 14% below its share price).

Key facts: HD vs IBP

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 0.84% for Installed Building Products, Inc. (IBP).
  • As of Oct 18, 2026, SmarterDividends grades HD's dividend safety A (85/100) and IBP's B (78/100).
  • By SmarterDividends' count as of Oct 18, 2026, HD has raised its dividend for 16 consecutive years and IBP for 4.
  • As of Oct 18, 2026, HD pays out 65% of its earnings as dividends and IBP pays out 36%.
  • As of Oct 18, 2026, HD's fair-value estimate is 14% below its share price and IBP's fair-value estimate is 62% below its share price, so HD looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "HD vs IBP: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/hd-vs-ibp

MetricHDIBP
Forward yield3.01%0.84%
Annual dividend$9.32$1.56
Payout ratio65%36%
Years of growth16 yr4 yr
5-yr dividend growth8.9%—
5-yr total return-23%44%
Dividend safety score85 (A)78 (B)
Fair value estimate$266.02$69.72
Upside to fair value-14%-62%
Frequencyquarterlyquarterly
Market cap$308.9B$4.9B
P/E ratio21.720.0

Higher yield

HD

3.01%

Safer dividend

HD

Grade A

Faster growth

HD

8.9%

Better value

HD

-14% upside

HD vs IBP — FAQ

Is HD or IBP a better dividend stock?

On the data, HD wins more head-to-head categories (5 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, HD or IBP?

HD has the higher forward dividend yield at 3.01%, versus 0.84% for IBP.

Is HD or IBP safer?

HD has the higher dividend-safety score (85/100 vs 78/100), reflecting stronger payout coverage and dividend-growth history.

Is HD or IBP better value right now?

As of Oct 18, 2026, HD looks like the better value: its fair-value estimate is 14% below its share price (fairly valued). For IBP, its fair-value estimate is 62% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.