LAD vs TM: Which Is the Better Dividend Stock?
As of August 2026, LAD (Lithia Motors, Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. TM offers the higher yield at 3.18%, LAD has the higher dividend-safety score, and LAD trades at the larger discount to fair value (+146%).
| Metric | LAD | TM |
|---|---|---|
| Forward yield | 0.76% | 3.18% |
| Annual dividend | $2.80 | $6.27 |
| Payout ratio | 7% | 26% |
| Years of growth | 15 yr | 3 yr |
| 5-yr dividend growth | 12.3% | 10.3% |
| 5-yr total return | 17% | 11% |
| Dividend safety score | 80 (A) | 60 (C) |
| Fair value estimate | $913.76 | $364.97 |
| Upside to fair value | +146% | +85% |
| Frequency | quarterly | semiannual |
| Market cap | $8.1B | $229.5B |
| P/E ratio | 12.3 | 8.9 |
Higher yield
TM
3.18%
Safer dividend
LAD
Grade A
Faster growth
LAD
12.3%
Better value
LAD
+146% upside
LAD vs TM — FAQ
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