ARCO vs TM: Which Is the Better Dividend Stock?
As of August 2026, TM (Toyota Motor Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. ARCO offers the higher yield at 3.52%, TM has the higher dividend-safety score, and TM trades at the larger discount to fair value (+85%).
| Metric | ARCO | TM |
|---|---|---|
| Forward yield | 3.52% | 3.18% |
| Annual dividend | $0.28 | $6.27 |
| Payout ratio | 21% | 26% |
| Years of growth | 0 yr | 3 yr |
| 5-yr dividend growth | 3.7% | 10.3% |
| 5-yr total return | 55% | 11% |
| Dividend safety score | 55 (C) | 60 (C) |
| Fair value estimate | $9.62 | $364.97 |
| Upside to fair value | +21% | +85% |
| Frequency | quarterly | semiannual |
| Market cap | $1.7B | $233.7B |
| P/E ratio | 6.5 | 8.9 |
Higher yield
ARCO
3.52%
Safer dividend
TM
Grade C
Faster growth
TM
10.3%
Better value
TM
+85% upside
ARCO vs TM — FAQ
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