SmarterDividends

BABAF vs LAD: Which Is the Better Dividend Stock?

As of Oct 18, 2026, LAD (Lithia Motors, Inc.) screens as the stronger dividend stock, winning 6 of 6 head-to-head metrics. BABAF offers the higher yield at 0.95%, LAD has the higher dividend-safety score, and LAD looks like the better value (its fair-value estimate is 167% above its share price).

Key facts: BABAF vs LAD

Data as of · Source: SmarterDividends data

  • As of Oct 18, 2026, Alibaba Group Holding Limited (BABAF) has the higher forward dividend yield at 0.95%, versus 0.95% for Lithia Motors, Inc. (LAD).
  • As of Oct 18, 2026, SmarterDividends grades BABAF's dividend safety B (76/100) and LAD's A (80/100).
  • By SmarterDividends' count as of Oct 18, 2026, BABAF has raised its dividend for 2 consecutive years and LAD for 15.
  • As of Oct 18, 2026, BABAF pays out 25% of its earnings as dividends and LAD pays out 7%.
  • As of Oct 18, 2026, BABAF's fair-value estimate is 1% below its share price and LAD's fair-value estimate is 167% above its share price, so LAD looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "BABAF vs LAD: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/babaf-vs-lad

MetricBABAFLAD
Forward yield0.95%0.95%
Annual dividend$0.13$2.80
Payout ratio25%7%
Years of growth2 yr15 yr
5-yr dividend growth—12.3%
5-yr total return-13%1%
Dividend safety score76 (B)80 (A)
Fair value estimate$13.59$788.71
Upside to fair value-1%+167%
Frequencyannualquarterly
Market cap$274.3B$6.5B
P/E ratio26.59.8

Higher yield

BABAF

0.95%

Safer dividend

LAD

Grade A

Faster growth

LAD

12.3%

Better value

LAD

+167% upside

BABAF vs LAD — FAQ

Is BABAF or LAD a better dividend stock?

On the data, LAD wins more head-to-head categories (6 vs 0). BABAF offers the higher yield (0.95%), while LAD has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.

Which has a higher dividend yield, BABAF or LAD?

BABAF has the higher forward dividend yield at 0.95%, versus 0.95% for LAD.

Is BABAF or LAD safer?

LAD has the higher dividend-safety score (80/100 vs 76/100), reflecting stronger payout coverage and dividend-growth history.

Is BABAF or LAD better value right now?

As of Oct 18, 2026, LAD looks like the better value: its fair-value estimate is 167% above its share price (undervalued). For BABAF, its fair-value estimate is 1% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.