HD 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. TM offers the higher yield at 3.32%, HD has the higher dividend-safety score, and TM trades at the larger discount to fair value (+67%).
| Metric | HD | TM |
|---|---|---|
| Forward yield | 2.74% | 3.32% |
| Annual dividend | $9.32 | $6.27 |
| Payout ratio | 66% | 31% |
| Years of growth | 16 yr | 3 yr |
| 5-yr dividend growth | 8.9% | 10.3% |
| 5-yr total return | 2% | 8% |
| Dividend safety score | 84 (A) | 57 (C) |
| Fair value estimate | $255.87 | $316.49 |
| Upside to fair value | -23% | +67% |
| Frequency | quarterly | semiannual |
| Market cap | $347.2B | $224.0B |
| P/E ratio | 24.1 | 9.9 |
Higher yield
TM
3.32%
Safer dividend
HD
Grade A
Faster growth
TM
10.3%
Better value
TM
+67% upside
HD vs TM — FAQ
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