After sending prayers and blessings on the Prophet Muhammad (peace be upon him), we go on to further praise Allah by saying, إنك حميد مجيد commonly translated to mean, “Indeed, You are praiseworthy and glorious.”
The word حميد comes from the same root as حمد hamd meaning a praise that is deserved, and can mean take on both the active and passive participle meanings: In other words, it can mean both “You are the One who praises your servants who follow Your command,” as well as, “You are the one who is praised for Your perfect attributes by the tongues of Your creation.”
And the word مجيد refers to one who possesses مجد which is greatness, or the perfection of sovereignty. To praise Allah using these two words in particular is very pertinent considering the previous supplication we made; we asked Allah to honour the Prophet peace be upon him, by - among other things - praising him in the highest assembly, and increasing his proximity to Allah by blessing him.
So when we say إنك حميد مجيد at this point, we are essentially saying, “Indeed, You are the One who is constantly deservedly praised by Your servants, but you also praise those who follow Your Command, therefore bestow Your praise upon the beloved Prophet (peace be upon him), and all those who follow him. And You are the One who possesses infinite greatness, glory and sovereignty, therefore send continuous goodness upon the beloved Prophet (peace be upon him), and all those who follow him.”