If you're an investor looking for a reliable dividend-paying stock, Honda Motor Company is definitely worth considering. Honda's dividend yield is a key factor in this decision.
Honda's dividend yield has been steadily increasing over the years, reaching a high of 2.3% in 2020. This is significantly higher than the industry average.
One of the main reasons Honda's dividend yield is so attractive is its strong financial performance. The company has consistently generated high profits and cash flows, allowing it to distribute a significant portion of its earnings to shareholders.
In fact, Honda has increased its dividend payout for 34 consecutive years, making it one of the most consistent dividend payers in the industry.
Criteria Checks
Honda is a dividend paying company. Its current yield is 4.66%.
The dividend is well covered by earnings. This is a good sign for investors.
The next payment date for the dividend is on 4th June, 2025.
Key Information
Honda's dividend yield is a notable aspect of its investment appeal.
The company's dividend yield is 4.9%, which is a reasonable return for investors.
A key metric to consider is the total shareholder yield, which includes both dividend yield and buyback yield. The total shareholder yield for Honda is 9.5%.
Here's a breakdown of Honda's dividend metrics:
The dividend per share is US$0.442, which is a decent payout for investors.
The payout ratio is 36%, which means Honda is distributing a significant portion of its earnings to shareholders.
Worth a look: Dividend Payout Ratio News
Shareholder Payout
HMC's dividend yield is a notable 4.7%, higher than the bottom 25% of dividend payers in the US market, which is only 1.4%. This suggests that HMC is a more attractive option for income investors.
The company's dividend is also in the top 25% of dividend payers in the US market, with a yield of 4.66% compared to 4.49% for the top 25%. This indicates that HMC's dividend is relatively high compared to its peers.
With a reasonably low payout ratio of 35.7%, HMC's dividend payments are well covered by earnings. This means that the company has enough earnings to cover its dividend payments, reducing the risk of a dividend cut.
However, it's worth noting that HMC is paying a dividend but the company has no free cash flows. This means that the company is relying on its earnings to cover the dividend payments, rather than its cash flow.
HMC
HMC is a stock that's worth taking a closer look at, especially if you're interested in dividend yields.
HMC has a dividend yield of 4.73%, which is a significant percentage of its current price.
The company's dividend history is impressive, with HMC issuing more dividends than 99.85% of other dividend-issuing US stocks over the past six years.
HMC's free cash flow is also noteworthy, with the company generating more cash flow over the 12 months prior than 99.37% of US dividend stocks.
Here are some stocks that are uncorrelated with HMC's price, making them suitable peers for a diversified dividend portfolio:
HMC's dividend payout is 13.90%, which is a relatively high percentage compared to other stocks.
Frequently Asked Questions
Did HMC stop paying dividends?
No, Honda Motor (HMC) has not stopped paying dividends. In fact, it has a current dividend yield of 3.85% and continues to pay $1.10 per share every six months.
What is the dividend payout ratio for Honda?
As of December 20, 2024, Honda's dividend payout ratio is 33.52%, a 17.71% increase from its 3-year average. This ratio indicates how much of Honda's earnings are paid out to shareholders.
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