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%).
| Metric | HMC | TM |
|---|---|---|
| Forward yield | 4.14% | 3.27% |
| Annual dividend | $1.33 | $6.27 |
| Payout ratio | 55% | 26% |
| Years of growth | 5 yr | 3 yr |
| 5-yr dividend growth | 35.2% | 10.3% |
| 5-yr total return | 9% | 8% |
| Dividend safety score | 62 (C) | 57 (C) |
| Fair value estimate | $45.71 | $368.92 |
| Upside to fair value | +42% | +93% |
| Frequency | semiannual | semiannual |
| Market cap | $41.8B | $226.8B |
| P/E ratio | — | 8.5 |
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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