SmarterDividends

HD vs RACE: Which Is the Better Dividend Stock?

As of July 2026, HD (The Home Depot, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. HD offers the higher yield at 2.75%, HD has the higher dividend-safety score, and HD trades at the larger discount to fair value (-25%).

MetricHDRACE
Forward yield2.75%1.12%
Annual dividend$9.32$4.23
Payout ratio66%33%
Years of growth16 yr4 yr
5-yr dividend growth8.9%22.8%
5-yr total return4%73%
Dividend safety score84 (A)55 (C)
Fair value estimate$255.76$198.22
Upside to fair value-25%-47%
Frequencyquarterlyannual
Market cap$332.1B$65.3B
P/E ratio24.136.7

Higher yield

HD

2.75%

Safer dividend

HD

Grade A

Faster growth

RACE

22.8%

Better value

HD

-25% upside

HD vs RACE — FAQ

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