IP vs TM: Which Is the Better Dividend Stock?
As of September 2026, TM (Toyota Motor Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. IP offers the higher yield at 5.40%, IP has the higher dividend-safety score, and TM trades at the larger discount to fair value (+85%).
| Metric | IP | TM |
|---|---|---|
| Forward yield | 5.40% | 3.26% |
| Annual dividend | $1.85 | $6.27 |
| Payout ratio | 158% | 26% |
| Years of growth | 0 yr | 3 yr |
| 5-yr dividend growth | -1.0% | 10.3% |
| 5-yr total return | -35% | 12% |
| Dividend safety score | 64 (C) | 57 (C) |
| Fair value estimate | $42.19 | $364.75 |
| Upside to fair value | +13% | +85% |
| Frequency | quarterly | semiannual |
| Market cap | $18.2B | $234.7B |
| P/E ratio | — | 8.4 |
Higher yield
IP
5.40%
Safer dividend
IP
Grade C
Faster growth
TM
10.3%
Better value
TM
+85% upside
IP vs TM — FAQ
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