The Home Depot, Inc.

HD
Consumer Cyclical
$348.86
1.89%Fair Value

The Home Depot, Inc. (HD) is a Consumer Cyclical company that currently yields 1.89% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $246.08 and the overvaluation threshold at $368.36. The Home Depot, Inc. holds a quality score of 57/100 (Average), reflecting 14 consecutive years of dividend growth with a 66% payout ratio. The 5-year dividend CAGR stands at 19.0%.

HD Dividend Yield History — Weiss Valuation

Underval. $246.08Overval. $368.36

Distance to undervalued

Waiting for a better entry

Needs about 29.5% downside to reach the Weiss buy zone

Undervaluation starts near $246.08, where the annual dividend would imply roughly 2.68% yield. That is 0.79% above today's yield.

Buy-zone price

$246.08

Target yield

2.68%

Research checklist

What to clear before buying the yield

Updated Jun 29, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

66%

Earnings coverage leaves room for noise.

Cash payout

92%

Confirm cash conversion and one-off effects.

Dividend growth

19.0%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-06-282026-06-29

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

The Home Depot, Inc. is trading at a fair valuation relative to its dividend history.

Current yield 1.9% vs historical max 2.8% (66% of maximum).

10 consecutive years without a dividend cut.

Reasonable payout ratio of 66%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 57/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

HD Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$225

Year 10 Income

$1,666

Yield on Cost

18.45%

Total Income

$7,127

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

See what HD dividends you actually received with Sharesight

Dividend income log · Yield on cost · DRIP cost basis · Tax reports

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

Sharesight ↗

HD Dividend Quality Score

Quality Score

57/ 100

Average

Payout Ratio12/25
Dividend Streak20/25
Growth (CAGR 5Y)20/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$348.86
Annual Dividend$6.60
Current Yield1.89%
Yield — Max (10Y)2.85%
Yield — Min (10Y)1.88%
Undervalued Below$246.08
Overvalued Above$368.36
Payout Ratio65.55%
CAGR Dividend 5Y19.0%
CAGR Dividend 10Y23.6%
Years No Cut10y

Invest in HD

Buy The Home Depot, Inc. commission-free on eToro

Start investing on eToro →
No commission€50 minimumCopy trading

DividendVisual may earn a commission if you open an account via this link, at no cost to you. Capital at risk. Not financial advice.

14
consecutive years of dividend growth