HD vs TM: Which Is the Better Dividend Stock?
As of September 2026, TM (Toyota Motor Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TM offers the higher yield at 3.27%, HD has the higher dividend-safety score, and TM trades at the larger discount to fair value (+93%).
| Metric | HD | TM |
|---|---|---|
| Forward yield | 3.11% | 3.27% |
| Annual dividend | $9.32 | $6.27 |
| Payout ratio | 65% | 26% |
| Years of growth | 16 yr | 3 yr |
| 5-yr dividend growth | 8.9% | 10.3% |
| 5-yr total return | -19% | 8% |
| Dividend safety score | 85 (A) | 57 (C) |
| Fair value estimate | $252.65 | $368.92 |
| Upside to fair value | -16% | +93% |
| Frequency | quarterly | semiannual |
| Market cap | $299.3B | $226.8B |
| P/E ratio | 21.0 | 8.5 |
Higher yield
TM
3.27%
Safer dividend
HD
Grade A
Faster growth
TM
10.3%
Better value
TM
+93% upside
HD vs TM — FAQ
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