SmarterDividends

HD vs TOL: Which Is the Better Dividend Stock?

As of September 2026, HD and TOL are closely matched. HD offers the higher yield at 3.14%, TOL has the higher dividend-safety score, and HD trades at the larger discount to fair value (-16%).

MetricHDTOL
Forward yield3.14%0.77%
Annual dividend$9.32$1.04
Payout ratio65%8%
Years of growth16 yr5 yr
5-yr dividend growth8.9%17.4%
5-yr total return-19%121%
Dividend safety score85 (A)87 (A)
Fair value estimate$252.65$86.09
Upside to fair value-16%-35%
Frequencyquarterlyquarterly
Market cap$293.5B$12.5B
P/E ratio20.611.0

Higher yield

HD

3.14%

Safer dividend

TOL

Grade A

Faster growth

TOL

17.4%

Better value

HD

-16% upside

HD vs TOL — FAQ

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