HD vs ROST: Dividend Yield, Growth & Safety Comparison
Home Depot, Inc. (HD) and Ross Stores, Inc. (ROST) are both in the Consumer Discretionary sector, making them natural rivals for dividend investors. HD offers a significantly higher 2.35% yield compared to ROST's 0.82%, a gap of 1.53%. ROST holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | HD | ROST |
|---|
| Dividend Yield | 2.35% | 0.82% |
| Annual Dividend | $9.20 | $1.62 |
| 5-Year CAGR | N/A | N/A |
| Payout Ratio | 62% | 25% |
| Consecutive Years | N/A | N/A |
| Price | $390.99 | $196.40 |
Yield Comparison
Home Depot, Inc. (HD) currently yields 2.35%, which is solid for the broader market. That's 1.53% more than Ross Stores, Inc. (ROST), which yields 0.82%. In dollar terms, HD pays $9.20/share annually versus ROST's $1.62/share.
Dividend Growth
Dividend growth data is limited for both stocks.
Dividend Safety
HD's dividend safety is rated "Moderate." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. ROST's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. ROST's payout ratio of 25% is more conservative than HD's 62%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in HD generates approximately $235/year in dividend income, compared to $82/year from ROST — a difference of $153/year. At $100,000, that gap widens to $1530/year.
Verdict
- Best for income: HD
- Best for safety: ROST
Frequently Asked Questions
Which has a higher dividend yield, HD or ROST?
Home Depot, Inc. (HD) has a higher dividend yield of 2.35% compared to Ross Stores, Inc. (ROST) at 0.82%.
Which is safer for dividend income, HD or ROST?
Home Depot, Inc.'s dividend safety is rated "Moderate" while Ross Stores, Inc. is rated "Safe." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. The payout ratio of 25% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in HD vs ROST generate?
A $10,000 investment in HD generates approximately $235/year in dividends, while the same amount in ROST generates about $82/year.
Which has a lower payout ratio, HD or ROST?
Ross Stores, Inc. has a lower payout ratio of 25% compared to Home Depot, Inc.'s 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
HD vs ROST: which is better for retirement income?
It depends on your priorities. HD for current income, ROST for safety. Many retirement investors hold both for diversification.
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