SmarterDividends

HD vs SW: Which Is the Better Dividend Stock?

As of July 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 SW trades at the larger discount to fair value (-24%).

MetricHDSW
Forward yield2.75%4.08%
Annual dividend$9.32$1.81
Payout ratio66%242%
Years of growth16 yr1 yr
5-yr dividend growth8.9%-9.8%
5-yr total return4%-22%
Dividend safety score84 (A)49 (D)
Fair value estimate$255.76$33.83
Upside to fair value-25%-24%
Frequencyquarterlyquarterly
Market cap$332.1B$22.6B
P/E ratio24.161.6

Higher yield

SW

4.08%

Safer dividend

HD

Grade A

Faster growth

HD

8.9%

Better value

SW

-24% upside

HD vs SW — FAQ

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