3 Top-Rated Auto Stocks with Dividend Yields Above 3%
Honda Motor, Mazda Motor, and Polaris are highlighted for their dividend yields above 3%, growth prospects, and favorable earnings outlooks. Honda (HMC) reported Q1 revenue growth and raised FY27 guidance. Mazda (MZDAY) saw record Q1 revenue and expects significant FY27 growth. Polaris (PII) delivered a strong Q2 earnings beat and has the highest dividend yield at 4.59%.
How this was made
The 30-second read
Why it matters
The earnings beats and raised guidance provide fresh catalysts for price appreciation.
Market read
All three stocks combine dividend yields above 3% with improving earnings, making them attractive for income‑oriented strategies.
What to watch
Potential headwinds from supply‑chain constraints and macro‑economic slowdown.
Background
Zacks article summarizing recent earnings and dividend yields of three auto companies.
Ticker impact
Honda reported Q1 FY27 revenue up 3% and raised FY27 EPS consensus to $2.19, indicating improving earnings outlook.
Potential upside of 3‑5% in the near term.
Earnings beat and forward P/E under 20x support a bullish view.
Polaris delivered Q2 EPS of $1.97 versus $0.77 consensus, a 156% surprise, and lifted FY27 EPS consensus to $3.70.
Expect 4‑6% upside on momentum.
Large EPS surprise and upward revisions signal momentum.
Market effects
Highlights dividend‑yield opportunities in the auto sector, may lift peers.
U.S. investors may rotate into auto stocks with attractive yields.
Shows broader trend of income‑focused allocations across automotive manufacturers.
Counterpoint
Yield‑seeking investors might overlook valuation risks if earnings growth stalls.
Key entities
- companyHonda Motor
Automotive manufacturer with improved earnings and >3% dividend.
- companyMazda Motor
Auto maker showing revenue surge and earnings revisions.
- companyPolaris
Powersports producer with massive EPS surprise and high dividend.
