The Home Depot, Inc.
HDThe Home Depot, Inc. (HD) is a Consumer Cyclical company that currently yields 3.08% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $320.52 and the overvaluation threshold at $482.22. The Home Depot, Inc. holds a quality score of 67/100 (Good), reflecting 14 consecutive years of dividend growth with a 65% payout ratio. The 5-year dividend CAGR stands at 19.0%.
HD Dividend Yield History — Weiss Valuation
Distance to undervalued
In undervalued territory
Price sits 12.6% below the Weiss buy zone ceiling
The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.
Zone ceiling
$320.52
Current yield
3.08%
Research checklist
What to clear before buying the yield
Updated Oct 1, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
65%Earnings coverage leaves room for noise.
Cash payout
86%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
2026-09-30 → 2026-10-01
Price
-2.7%$288.04 → $280.19
Price fell 2.7% since the prior snapshot.
Why Now?
The Home Depot, Inc. is trading near its historical undervaluation band.
Current yield 3.1% vs historical max 2.9% (108% of maximum).
10 consecutive years without a dividend cut.
Reasonable payout ratio of 65%.
What matters now
Read the signal before the headline yield
Valuation is the invitation here: the yield is elevated versus its own history.
The 67/100 quality score calls for selective follow-up, not autopilot.
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
$367
Year 10 Income
$3,529
Yield on Cost
41.49%
Total Income
$13,628
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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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
Good
Key Metrics
HD has an undervalued Weiss signal. Review the risks and current trading costs before acting.
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In-depth analysis
→ HD Dividend Analysis Article