HD vs IP: Which Is the Better Dividend Stock?
As of Oct 27, 2026, HD (The Home Depot, Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. IP offers the higher yield at 5.54%, HD has the higher dividend-safety score, and IP looks like the better value (its fair-value estimate is 10% above its share price).
Key facts: HD vs IP
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, International Paper Company (IP) has the higher forward dividend yield at 5.54%, versus 2.92% for The Home Depot, Inc. (HD).
- As of Oct 27, 2026, SmarterDividends grades HD's dividend safety A (85/100) and IP's C (64/100).
- By SmarterDividends' count as of Oct 27, 2026, HD has raised its dividend for 16 consecutive years and IP for 0.
- As of Oct 27, 2026, HD pays out 65% of its earnings as dividends and IP pays out 402%.
- As of Oct 27, 2026, HD's fair-value estimate is 17% below its share price and IP's fair-value estimate is 10% above its share price, so IP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HD vs IP: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/hd-vs-ip
| Metric | HD | IP |
|---|---|---|
| Forward yield | 2.92% | 5.54% |
| Annual dividend | $9.32 | $1.85 |
| Payout ratio | 65% | 402% |
| Years of growth | 16 yr | 0 yr |
| 5-yr dividend growth | 8.9% | -1.0% |
| 5-yr total return | -20% | -27% |
| Dividend safety score | 85 (A) | 64 (C) |
| Fair value estimate | $266.02 | $36.66 |
| Upside to fair value | -17% | +10% |
| Frequency | quarterly | quarterly |
| Market cap | $318.6B | $17.7B |
| P/E ratio | 22.3 | — |
Higher yield
IP
5.54%
Safer dividend
HD
Grade A
Faster growth
HD
8.9%
Better value
IP
+10% upside
HD vs IP — FAQ
Is HD or IP a better dividend stock?
On the data, HD wins more head-to-head categories (6 vs 2). IP offers the higher yield (5.54%), 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 IP?
IP has the higher forward dividend yield at 5.54%, versus 2.92% for HD.
Is HD or IP safer?
HD has the higher dividend-safety score (85/100 vs 64/100), reflecting stronger payout coverage and dividend-growth history.
Is HD or IP better value right now?
As of Oct 27, 2026, IP looks like the better value: its fair-value estimate is 10% above its share price (fairly valued). For HD, its fair-value estimate is 17% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.