HMC vs TM: Which Is the Better Dividend Stock?
As of July 2026, TM (Toyota Motor Corporation) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. HMC offers the higher yield at 4.73%, HMC has the higher dividend-safety score, and TM trades at the larger discount to fair value (+76%).
| Metric | HMC | TM |
|---|---|---|
| Forward yield | 4.73% | 3.53% |
| Annual dividend | $1.33 | $6.27 |
| Payout ratio | 55% | 31% |
| Years of growth | 5 yr | 3 yr |
| 5-yr dividend growth | 35.2% | 10.3% |
| 5-yr total return | -7% | 2% |
| Dividend safety score | 57 (C) | 57 (C) |
| Fair value estimate | $45.71 | $312.17 |
| Upside to fair value | +62% | +76% |
| Frequency | semiannual | semiannual |
| Market cap | $36.6B | $211.4B |
| P/E ratio | — | 9.7 |
Higher yield
HMC
4.73%
Safer dividend
HMC
Grade C
Faster growth
HMC
35.2%
Better value
TM
+76% upside
HMC vs TM — FAQ
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