Honda Motor Co., Ltd.
HMCConsumer Cyclical · Stock · semiannual payer
Forward Yield
4.73%
Annual Dividend
$1.33
Payout Ratio
55%
5-Yr Growth
35.2%
Ex-Date
Mar 30, 2026
Frequency
Semiannual
Summary
As of July 2026, Honda Motor Co., Ltd. (HMC) yields 4.73% ($1.33 per share annually), with a blended fair-value estimate of $45.71 — +62% upside, so it screens as undervalued. Dividend safety grade: C (57/100). 5 years of dividend growth.
Is HMC a good dividend stock?
MixedHonda Motor Co., Ltd. (HMC) pays a semiannual dividend yielding 4.73% ($1.33/yr), with 5 years of growth and a dividend-safety grade of C. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
- Comfortable payout ratio (55%)
- Strong 35.2% 5-yr dividend growth
Risks
- Cut its dividend in 2020
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 4.73%
- Payout Ratio
- 55%
- Annual Dividend
- $1.33
- 5-Yr Avg Growth
- 35.2%
- Ex-Dividend Date
- Mar 30, 2026
- Years of Growth
- 5
- Frequency
- semiannual
- Beta
- 0.29
- Market Cap
- $36.5B
- P/E Ratio
- —
- 5-Yr Total Return
- -7%
- 52-Week Range
- $23.25 – $34.89
- Dividend Safety
- C · 57/100
- Ever Cut?
- Yes (2020)
Frequently Asked Questions
HMC Price — Last 12 Months
Daily close
Price Return
1 Year
-16%
3 Years
-13%
5 Years
-7%
52-Week Range
$23.25 – $34.89
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is HMC worth?
Undervaluedlow confidenceOur blended fair-value estimate for Honda Motor Co., Ltd. is $45.71 per share, versus a market price of $28.16. That implies 62% of upside — a margin of safety of about 38%.
Fair Value
$45.71
Current Price
$28.16
Upside
+62%
Margin of Safety
38%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 15.7% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 15.7% stage-1 growth, 2.5% terminal growth, -$1.97 EPS, $1.33 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
HMC Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Mar 28, 2025 | — | $0.7120 | regular |
| Sep 27, 2024 | — | $0.6730 | regular |
| Mar 27, 2024 | — | $0.7470 | regular |
| Sep 28, 2023 | — | $0.5910 | regular |
| Mar 29, 2023 | — | $0.4300 | regular |
| Sep 28, 2022 | — | $0.4430 | regular |
| Mar 29, 2022 | — | $0.4960 | regular |
| Sep 28, 2021 | — | $0.3900 | regular |
| Mar 29, 2021 | — | $0.3900 | regular |
| Dec 29, 2020 | — | $0.1900 | regular |
| Sep 28, 2020 | — | $0.1500 | regular |
| Jun 26, 2020 | — | $0.0800 | regular |
| Mar 27, 2020 | — | $0.2100 | regular |
| Dec 27, 2019 | — | $0.2000 | regular |
Income Calculator
At $1.33 / yr per share
