SmarterDividends

HD vs SW: Which Is the Better Dividend Stock?

As of September 2026, HD (The Home Depot, Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. SW offers the higher yield at 4.08%, HD has the higher dividend-safety score, and HD trades at the larger discount to fair value (-16%).

MetricHDSW
Forward yield3.11%4.08%
Annual dividend$9.32$1.81
Payout ratio65%188%
Years of growth16 yr1 yr
5-yr dividend growth8.9%-9.8%
5-yr total return-19%-14%
Dividend safety score85 (A)48 (D)
Fair value estimate$252.65$37.17
Upside to fair value-16%-16%
Frequencyquarterlyquarterly
Market cap$299.3B$23.3B
P/E ratio21.047.2

Higher yield

SW

4.08%

Safer dividend

HD

Grade A

Faster growth

HD

8.9%

Better value

HD

-16% upside

HD vs SW — FAQ

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