SmarterDividends

HD 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 8 head-to-head metrics. HMC offers the higher yield at 4.14%, HD has the higher dividend-safety score, and HMC trades at the larger discount to fair value (+42%).

MetricHDHMC
Forward yield3.11%4.14%
Annual dividend$9.32$1.33
Payout ratio65%55%
Years of growth16 yr5 yr
5-yr dividend growth8.9%35.2%
5-yr total return-19%9%
Dividend safety score85 (A)62 (C)
Fair value estimate$252.65$45.71
Upside to fair value-16%+42%
Frequencyquarterlysemiannual
Market cap$299.3B$41.8B
P/E ratio21.0

Higher yield

HMC

4.14%

Safer dividend

HD

Grade A

Faster growth

HMC

35.2%

Better value

HMC

+42% upside

HD vs HMC — FAQ

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