HD vs KBH: Which Is the Better Dividend Stock?
As of Oct 18, 2026, HD and KBH are closely matched. HD offers the higher yield at 3.01%, HD has the higher dividend-safety score, and KBH looks like the better value (its fair-value estimate is 17% above its share price).
Key facts: HD vs KBH
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 2.31% for KB Home (KBH).
- As of Oct 18, 2026, SmarterDividends grades HD's dividend safety A (85/100) and KBH's A (82/100).
- By SmarterDividends' count as of Oct 18, 2026, HD has raised its dividend for 16 consecutive years and KBH for 3.
- As of Oct 18, 2026, HD pays out 65% of its earnings as dividends and KBH pays out 28%.
- As of Oct 18, 2026, HD's fair-value estimate is 14% below its share price and KBH's fair-value estimate is 17% above its share price, so KBH looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HD vs KBH: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/hd-vs-kbh
| Metric | HD | KBH |
|---|---|---|
| Forward yield | 3.01% | 2.31% |
| Annual dividend | $9.32 | $1.00 |
| Payout ratio | 65% | 28% |
| Years of growth | 16 yr | 3 yr |
| 5-yr dividend growth | 8.9% | 22.7% |
| 5-yr total return | -23% | 8% |
| Dividend safety score | 85 (A) | 82 (A) |
| Fair value estimate | $266.02 | $50.62 |
| Upside to fair value | -14% | +17% |
| Frequency | quarterly | quarterly |
| Market cap | $308.9B | $2.6B |
| P/E ratio | 21.7 | 12.2 |
Higher yield
HD
3.01%
Safer dividend
HD
Grade A
Faster growth
KBH
22.7%
Better value
KBH
+17% upside
HD vs KBH — FAQ
Is HD or KBH a better dividend stock?
HD and KBH are closely matched. HD has the higher yield; HD scores better on safety.
Which has a higher dividend yield, HD or KBH?
HD has the higher forward dividend yield at 3.01%, versus 2.31% for KBH.
Is HD or KBH safer?
HD has the higher dividend-safety score (85/100 vs 82/100), reflecting stronger payout coverage and dividend-growth history.
Is HD or KBH better value right now?
As of Oct 18, 2026, KBH looks like the better value: its fair-value estimate is 17% above its share price (undervalued). For HD, its fair-value estimate is 14% below its share price.
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