Which has a higher dividend yield, HD or LOW?

Home Depot, Inc. (HD) has a higher dividend yield of 2.35% compared to Lowes Companies Inc (LOW) at 1.65%.

How much income does $10,000 in HD vs LOW generate?

A $10,000 investment in HD generates approximately $235/year in dividends, while the same amount in LOW generates about $165/year.

Which has a lower payout ratio, HD or LOW?

Lowes Companies Inc has a lower payout ratio of 39% compared to Home Depot, Inc.'s 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.

HD vs LOW: which is better for retirement income?

It depends on your priorities. HD for current income, LOW for safety. Many retirement investors hold both for diversification.

HD vs LOW: Dividend Comparison

HD$390.99

Home Depot, Inc.

Consumer Discretionary

LOW$286.72

Lowes Companies Inc

Consumer Discretionary

Dividend data as of August 16, 2026

Home Depot, Inc. (HD) and Lowes Companies Inc (LOW) are both in the Consumer Discretionary sector, making them natural rivals for dividend investors. HD edges ahead on yield at 2.35% versus LOW's 1.65%. LOW holds the edge in dividend safety with a "Safe" rating.

Verdict

Best for Income

Higher yield at 2.35%

Best for Safety

LOW

Rated "Safe"

Metric

LOW

Price

$390.99

$286.72

Dividend Yield

2.35%

1.65%

Annual Dividend

$9.20

$4.70

5yr Div CAGR

—

20.9%

3yr Div CAGR

—

20.3%

Consecutive Years

—

Payout Ratio

62.41%

38.91%

P/E Ratio

—

Market Cap

—

Income on $10k

$235/yr

$165/yr

Yield Analysis

2.35%

LOW

1.65%

HD yields 0.70% more than LOW. In dollar terms, HD pays $9.20/share vs LOW's $4.70/share annually.

Dividend Growth

HD 5yr CAGR

—

LOW 5yr CAGR

20.9%

decelerating

LOW: Dividend growth is slowing — the 3-year CAGR of 20.3% trails the 5-year rate of 20.9% and the 10-year rate of 19.0%.

Dividend Safety

Moderate

Payout Ratio62%

LOW

Safe

Payout Ratio39%

HD: The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth.

LOW: The payout ratio of 39% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x.

Estimated Annual Dividend Income

Based on current dividend yields. Actual income may vary.

Investment

LOW

Difference

$10,000

$235/yr

$165/yr

+$70 (HD)

$50,000

$1,177/yr

$826/yr

+$351 (HD)

$100,000

$2,355/yr

$1,651/yr

+$704 (HD)

What does $10,000 buy in HD vs LOW today?

At $390.99 per share, $10,000 buys about 25.6 shares of Home Depot, Inc. (HD). Each share pays $9.20 per year in dividends, so the position starts out generating roughly $235 per year — about $20 a month.

At $286.71 per share, $10,000 buys about 34.9 shares of Lowes Companies Inc (LOW). Each share pays $4.70 per year in dividends, so the position starts out generating roughly $164 per year — about $14 a month.

HD is the larger income stream from day one: $71 per year more on the same $10,000 invested.

Why is there no dividend growth comparison for HD?

REWD's dividend database has no five-year growth rate for Home Depot, Inc. (HD) — most often because the dividend history is too short to compute one, which is common for companies that began paying dividends only in the past few years.

What the data does show for HD: a 2.35% current yield and a moderate 62% payout ratio. Until a multi-year raise history exists, treat any growth assumption for HD as a guess rather than a trend.

Lowes Companies Inc (LOW) is the one with a measurable track record here — dividend raises of about 20.9% a year over the past five years. If a proven raise history matters to you, LOW wins that dimension by default until HD builds one.

Can HD and LOW afford their dividends?

Home Depot, Inc. (HD) pays out about 62% of its earnings as dividends, which implies roughly 1.6x earnings coverage.

Lowes Companies Inc (LOW) earns $12.07 per share against $4.70 paid out in dividends — 2.6x coverage (a 39% payout ratio).

LOW's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for HD if earnings weaken.

Which fits an early-retirement income portfolio better, HD or LOW?

For income you need right now, Home Depot, Inc. (HD) leads: $100,000 invested today pays about $196 a month at the current 2.35% yield, versus $138 a month from Lowes Companies Inc (LOW) at 1.65%.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.

$10,000 with DRIP: projected annual income

If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $297/yr in HD vs $1,298/yr in LOW by year 10.

Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR (0% where growth history is unavailable). A projection, not a prediction — no price appreciation modeled.

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