HD vs PKG: Which Is the Better Dividend Stock?
As of Oct 25, 2026, HD (The Home Depot, Inc.) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. HD offers the higher yield at 2.91%, HD has the higher dividend-safety score, and HD looks like the better value (its fair-value estimate is 17% below its share price).
Key facts: HD vs PKG
Data as of · Source: SmarterDividends data
- As of Oct 25, 2026, The Home Depot, Inc. (HD) has the higher forward dividend yield at 2.91%, versus 2.43% for Packaging Corporation of America (PKG).
- As of Oct 25, 2026, SmarterDividends grades HD's dividend safety A (85/100) and PKG's B (78/100).
- By SmarterDividends' count as of Oct 25, 2026, HD has raised its dividend for 16 consecutive years and PKG for 0.
- As of Oct 25, 2026, HD pays out 65% of its earnings as dividends and PKG pays out 68%.
- As of Oct 25, 2026, HD's fair-value estimate is 17% below its share price and PKG's fair-value estimate is 23% below its share price, so HD looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HD vs PKG: Dividend Yield, Safety & Value Compared," updated Oct 25, 2026, https://smarterdividends.com/compare/hd-vs-pkg
| Metric | HD | PKG |
|---|---|---|
| Forward yield | 2.91% | 2.43% |
| Annual dividend | $9.32 | $6.00 |
| Payout ratio | 65% | 68% |
| Years of growth | 16 yr | 0 yr |
| 5-yr dividend growth | 8.9% | 8.2% |
| 5-yr total return | -20% | 89% |
| Dividend safety score | 85 (A) | 78 (B) |
| Fair value estimate | $266.02 | $191.14 |
| Upside to fair value | -17% | -23% |
| Frequency | quarterly | quarterly |
| Market cap | $319.1B | $22.0B |
| P/E ratio | 22.4 | 30.5 |
Higher yield
HD
2.91%
Safer dividend
HD
Grade A
Faster growth
HD
8.9%
Better value
HD
-17% upside
HD vs PKG — FAQ
Is HD or PKG a better dividend stock?
On the data, HD wins more head-to-head categories (7 vs 1). HD offers the higher yield (2.91%), 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 PKG?
HD has the higher forward dividend yield at 2.91%, versus 2.43% for PKG.
Is HD or PKG safer?
HD has the higher dividend-safety score (85/100 vs 78/100), reflecting stronger payout coverage and dividend-growth history.
Is HD or PKG better value right now?
As of Oct 25, 2026, HD looks like the better value: its fair-value estimate is 17% below its share price (overvalued). For PKG, its fair-value estimate is 23% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.