SmarterDividends

HMC vs TM: 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%, HMC has the higher dividend-safety score, and TM trades at the larger discount to fair value (+93%).

MetricHMCTM
Forward yield4.14%3.27%
Annual dividend$1.33$6.27
Payout ratio55%26%
Years of growth5 yr3 yr
5-yr dividend growth35.2%10.3%
5-yr total return9%8%
Dividend safety score62 (C)57 (C)
Fair value estimate$45.71$368.92
Upside to fair value+42%+93%
Frequencysemiannualsemiannual
Market cap$41.8B$226.8B
P/E ratio8.5

Higher yield

HMC

4.14%

Safer dividend

HMC

Grade C

Faster growth

HMC

35.2%

Better value

TM

+93% upside

HMC vs TM — FAQ

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