HD vs RL: Which Is the Better Dividend Stock?
As of Nov 5, 2026, HD and RL are closely matched. HD offers the higher yield at 2.62%, RL has the higher dividend-safety score, and RL looks like the better value (its fair-value estimate is 7% above its share price).
Key facts: HD vs RL
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, The Home Depot, Inc. (HD) has the higher forward dividend yield at 2.62%, versus 0.97% for Ralph Lauren Corporation (RL).
- As of Nov 5, 2026, SmarterDividends grades HD's dividend safety A (85/100) and RL's A (88/100).
- By SmarterDividends' count as of Nov 5, 2026, HD has raised its dividend for 16 consecutive years and RL for 4.
- As of Nov 5, 2026, HD pays out 65% of its earnings as dividends and RL pays out 24%.
- As of Nov 5, 2026, HD's fair-value estimate is 26% below its share price and RL's fair-value estimate is 7% above its share price, so RL looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HD vs RL: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/hd-vs-rl
| Metric | HD | RL |
|---|---|---|
| Forward yield | 2.62% | 0.97% |
| Annual dividend | $9.32 | $4.00 |
| Payout ratio | 65% | 24% |
| Years of growth | 16 yr | 4 yr |
| 5-yr dividend growth | 8.9% | 5.3% |
| 5-yr total return | -18% | 239% |
| Dividend safety score | 85 (A) | 88 (A) |
| Fair value estimate | $262.27 | $408.08 |
| Upside to fair value | -26% | +7% |
| Frequency | quarterly | quarterly |
| Market cap | $351.4B | $22.6B |
| P/E ratio | 24.6 | 23.9 |
Higher yield
HD
2.62%
Safer dividend
RL
Grade A
Faster growth
HD
8.9%
Better value
RL
+7% upside
HD vs RL — FAQ
Is HD or RL a better dividend stock?
HD and RL are closely matched. HD has the higher yield; RL scores better on safety.
Which has a higher dividend yield, HD or RL?
HD has the higher forward dividend yield at 2.62%, versus 0.97% for RL.
Is HD or RL safer?
RL has the higher dividend-safety score (88/100 vs 85/100), reflecting stronger payout coverage and dividend-growth history.
Is HD or RL better value right now?
As of Nov 5, 2026, RL looks like the better value: its fair-value estimate is 7% above its share price (fairly valued). For HD, its fair-value estimate is 26% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.