Honda's Dividend Is Best In Class
By Sammy Pollack:Honda Motor Co (HMC) currently pays a dividend of 2%. This dividend does not make HMC a high yielder. However, HMC's dividend is higher than its peers. This is important for investors who are attracted to yield but also need diversification. HMC is also well-positioned to maintain its dividend advantage over competitors. Peer Dividend Yields General Motors Co (GM): 0%
- While GM just reported record earnings for 2011, GM is unlikely to pay a dividend until the U.S. Government divest its shares in GM.
Ford Motor Co (F): 1.57%
- F pays a solid dividend, but F's debt level makes the long-term stability of the dividend questionable. F has just under $100 billion in debt. If the economy were to weaken, F would likely be forced to cut the dividend.
Tata Motors Ltd (TTM): 1.6%
- TTM has strong growth prospects because it does most of its business in India. For this