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The Home Depot, Inc. (HD) logo

The Home Depot, Inc.

S&P 500
HD|Consumer Cyclical|Home Improvement Retail|$317.45|P/E 22.7|MCap 316.2B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

67/ 100Safe

HD's dividend appears safe and well-supported. Strengths include a 64.6% earnings payout ratio & 8.7x interest coverage. Areas of concern: 60.9% net debt / total assets & 514.4 debt-to-equity. The dividend has been growing at a 8.92% 5-year CAGR.

Based on 15 of 15 metrics

Strengths

  • Return on Equity: 145.5%Strong return on equity reflects efficient profit generation.
  • Profit Margin Stability: Very StableProfit margins have stayed stable through cycles.
  • Dividend Streak: 11+ yrsLong, uninterrupted dividend track record.

Risks

  • Debt-to-Equity: 514.4Debt-to-equity is elevated for the sector.
  • Net Debt / Total Assets: 60.9%Net debt is high relative to total assets.

Payout & Coverage

Safe
Earnings Payout Ratio
64.6%Safe
FCF Payout Ratio
72.4%Caution
CFO Payout Ratio
53.8%Caution
Interest Coverage
8.7xSafe

Balance Sheet

Warning
Net Debt / Total Assets
60.9%Warning
Current Ratio
1.1xCaution
Debt-to-Equity
514.4Danger

Profitability

Safe
Return on Equity
145.5%Very Safe
Operating Margin
10.1%Caution
Gross Margin
32.6%Caution
Profit Margin Stability
Very StableVery Safe

Dividend Track Record

Very Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
8.9%Safe
Earnings Stability
GrowingVery Safe

About The Home Depot, Inc.

The Home Depot, Inc. is the world's largest home improvement specialty retailer, operating over 2,300 warehouse-style stores across the United States, Canada, and Mexico. It specializes in selling a vast array of building materials, home improvement products, lawn and garden supplies, decor items, and facilities maintenance, repair, and operations (MRO) products. The company also provides essential services such as professional installation for flooring, water heaters, cabinets, and windows, along with tool and equipment rental options. Founded in 1978 and headquartered in Atlanta, Georgia, The Home Depot, Inc. employs approximately 470,000 people and serves both individual consumers and professional customers through its expansive retail network and online platform offering over 1 million products. Strategic acquisitions like Interline Brands, HD Supply, SRS Distribution, and GMS have strengthened its position in professional services, roofing, landscaping, and building products distribution. As a key player in the consumer cyclical sector's home improvement retail industry, it holds significant market influence with annual revenues exceeding $159 billion, underscoring its central role in supporting residential and commercial renovation needs.

Dividend Overview

Dividend Yield

2.91%

Annual Dividend

$9.23

Frequency

Quarterly

Payout Ratio

64.65%

FCF Payout Ratio

72.37%

Stock Price

$317.45

52-Week Range

$310.40 $426.75

Dividend History (2016–2025)

HD annual dividend per share and yield history

Earnings & Profitability

HD earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

March 12, 2026

Last Payment Date

March 26, 2026

Dividend Growth

3-Year Dividend CAGR

6.58%

5-Year Dividend CAGR

8.92%

10-Year Dividend CAGR

14.57%

3-Year Total Growth

21.05%

5-Year Total Growth

53.33%

10-Year Total Growth

289.83%

Income Calculator

HD Dividend Calculator

Total Investment

$31,745.00

Annual Income

$923.00

Quarterly Income

$230.75

Monthly Income

$76.92

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Frequently Asked Questions

What is HD's current dividend yield?
The Home Depot, Inc. (HD) currently has a dividend yield of 2.91%, based on a stock price of $317.45 and an annual dividend of $9.23.
When is HD's next dividend payment date?
HD's next ex-dividend date is 2026-03-12 and the next payment date is 2026-03-26. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does HD pay in dividends per year?
The Home Depot, Inc. paid $9.20 per share in annual dividends in 2025. The dividends are paid quarterly.
Has HD been increasing its dividend?
The Home Depot, Inc. has grown its dividend at a 5-year CAGR of 8.92% and a 10-year CAGR of 14.57%.
Is HD's dividend safe?
The Home Depot, Inc. has a payout ratio of 64.65%. Its free cash flow payout ratio is 72.37%. The payout ratio is moderate. Monitor earnings to ensure sustainability.
How is HD's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates The Home Depot, Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for consumer cyclical companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.