HD vs LAD: Which Is the Better Dividend Stock?
As of Oct 18, 2026, HD and LAD are closely matched. HD offers the higher yield at 3.01%, HD has the higher dividend-safety score, and LAD looks like the better value (its fair-value estimate is 167% above its share price).
Key facts: HD vs LAD
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 0.95% for Lithia Motors, Inc. (LAD).
- As of Oct 18, 2026, SmarterDividends grades HD's dividend safety A (85/100) and LAD's A (80/100).
- By SmarterDividends' count as of Oct 18, 2026, HD has raised its dividend for 16 consecutive years and LAD for 15.
- As of Oct 18, 2026, HD pays out 65% of its earnings as dividends and LAD pays out 7%.
- As of Oct 18, 2026, HD's fair-value estimate is 14% below its share price and LAD's fair-value estimate is 167% above its share price, so LAD looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HD vs LAD: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/hd-vs-lad
| Metric | HD | LAD |
|---|---|---|
| Forward yield | 3.01% | 0.95% |
| Annual dividend | $9.32 | $2.80 |
| Payout ratio | 65% | 7% |
| Years of growth | 16 yr | 15 yr |
| 5-yr dividend growth | 8.9% | 12.3% |
| 5-yr total return | -23% | 1% |
| Dividend safety score | 85 (A) | 80 (A) |
| Fair value estimate | $266.02 | $788.71 |
| Upside to fair value | -14% | +167% |
| Frequency | quarterly | quarterly |
| Market cap | $308.9B | $6.5B |
| P/E ratio | 21.7 | 9.8 |
Higher yield
HD
3.01%
Safer dividend
HD
Grade A
Faster growth
LAD
12.3%
Better value
LAD
+167% upside
HD vs LAD — FAQ
Is HD or LAD a better dividend stock?
HD and LAD are closely matched. HD has the higher yield; HD scores better on safety.
Which has a higher dividend yield, HD or LAD?
HD has the higher forward dividend yield at 3.01%, versus 0.95% for LAD.
Is HD or LAD safer?
HD has the higher dividend-safety score (85/100 vs 80/100), reflecting stronger payout coverage and dividend-growth history.
Is HD or LAD better value right now?
As of Oct 18, 2026, LAD looks like the better value: its fair-value estimate is 167% above its share price (undervalued). For HD, its fair-value estimate is 14% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.