SmarterDividends

BABAF vs HMC: Which Is the Better Dividend Stock?

As of September 2026, HMC (Honda Motor Co., Ltd.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. HMC offers the higher yield at 4.14%, BABAF has the higher dividend-safety score, and HMC trades at the larger discount to fair value (+42%).

MetricBABAFHMC
Forward yield0.98%4.14%
Annual dividend$0.13$1.33
Payout ratio24%55%
Years of growth2 yr5 yr
5-yr dividend growth35.2%
5-yr total return-34%9%
Dividend safety score76 (B)62 (C)
Fair value estimate$11.26$45.71
Upside to fair value-18%+42%
Frequencyannualsemiannual
Market cap$291.6B$42.2B
P/E ratio26.7

Higher yield

HMC

4.14%

Safer dividend

BABAF

Grade B

Faster growth

HMC

35.2%

Better value

HMC

+42% upside

BABAF vs HMC — FAQ

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