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 3.16%, HD has the higher dividend-safety score, and TM trades at the larger discount to fair value (+88%).
| Metric | HD | TM |
|---|---|---|
| Forward yield | 3.02% | 3.16% |
| 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 | -6% | 12% |
| Dividend safety score | 85 (A) | 60 (C) |
| Fair value estimate | $252.71 | $373.00 |
| Upside to fair value | -18% | +88% |
| Frequency | quarterly | semiannual |
| Market cap | $310.2B | $233.9B |
| P/E ratio | 21.8 | 8.6 |
Higher yield
TM
3.16%
Safer dividend
HD
Grade A
Faster growth
TM
10.3%
Better value
TM
+88% upside
HD vs TM — FAQ
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