Toyota Motor Corporation (TM +0.27%) is a Japanese multinational automotive manufacturer and among the world's largest automakers, known for producing a wide range of vehicles, including cars, trucks, and buses. Toyota Motor Corporation owns the brands Toyota, Lexus, Daihatsu, and Hino.
Toyota also provides financial services and is involved in other ventures like housing and marine services. Toyota Motor Corporation began as a division of Toyoda Automatic Loom Works, established in 1937 by Kiichiro Toyoda. Initially, the company focused on producing trucks and passenger cars, with the first passenger car, called the Model AA, launched in 1936.
NYSE: TM
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Over time, Toyota expanded its operations, becoming a global automotive leader known for its quality and reliability. In the wake of World War II, Toyota faced a challenging environment with wrecked facilities and a struggling economy. But the company persevered, resuming passenger car production in 1947 with the Model SA. In the postwar years, Toyota adopted techniques that would later form the foundation of the Toyota Production System, which hinges on the principle of producing only what is needed, when it is needed, and in the quantity needed.
Toyota held its initial public offering (IPO) on May 1, 1949, on the New York Stock Exchange (NYSE). Toyota shares were also listed on the First Section of the Tokyo, Nagoya, and Osaka stock exchanges in May 1949. By the 1950s, Toyota was exporting vehicles, and by the late 1960s, they had established a strong presence in the U.S. market with models like the Corolla and Corona.
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The 21st century has marked significant waves of expansion for Toyota, including the introduction of innovative vehicles like the Prius and Mirai. Toyota has maintained its position as a leading global automaker, focusing on sustainability and future mobility solutions. In 2023, Toyota produced its 300 millionth vehicle by September of that year.
Toyota is now focused on expanding its electric vehicle (EV) lineup and improving fuel cell technology. Toyota also recently achieved its goal for EVs to surpass 50% of total sales volume and is launching new hybrid models like the Corolla Cross Hybrid and Grand Highlander Hybrid. Additionally, Toyota is making strides in hydrogen fuel cell technology with an updated Mirai and exploring commercial applications like hydrogen-powered trucks and buses.
Keep reading to learn how to buy shares of Toyota Motor stock, what to consider before investing in this company, whether it pays a dividend, and much more.
How to buy Toyota Motor stock
Investing in Toyota Motor stock is easy, as the company is publicly traded. Here’s what you need to know if you want to buy shares of Toyota.
Step 1: Open your brokerage app: Log into your brokerage account where you handle your investments.
Step 2: Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Step 5: Submit your order: Confirm the details and submit your buy order.
Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest in Toyota Motor stock?
Deciding to buy Toyota Motor stock depends on your personal investing interests and objectives, risk tolerance level, and the types of stocks you like to buy. Toyota makes money primarily through the sale of vehicles, including passenger vehicles, minivans, and commercial vehicles. The company also generates revenue through its financial services segment, offering loans and leases to customers and dealers along with other financial products. The company earns a smaller portion of revenue from the sale of automotive parts, components, and accessories.
Investing in Toyota stock could be an attractive opportunity for value-oriented investors who want to put cash into the automotive industry and are interested in holding a position in a global powerhouse in this space. The company has a broad product portfolio that spans different models of vehicles, allowing it to cater to diverse customer preferences and maintain a strong market presence.
Toyota also remains at the forefront of innovation within the automotive industry in hybrid and EV technologies. Toyota is actively investing in new areas like self-driving car services, battery electric vehicles (BEVs), and plug-in hybrid electric vehicles (PHEVs) to meet the growing demand for electrification. Toyota is also putting money into battery manufacturing and plans to offer a wide range of BEV and PHEV models across its Toyota and Lexus brands by 2030.
Although only about 1% of Toyota's global vehicle sales are EVs right now, the transportation stock is a leader in hybrid vehicles. Toyota also plans to significantly increase its EV production and sales, aiming to produce 3.5 million EVs by 2030. Investors who want to gain exposure to the EV space while investing in a legacy automaker and the world’s largest automotive company might find the best of all worlds in Toyota stock. Toyota's consolidated net revenues for fiscal year 2025 were approximately 48 trillion yen, equivalent to approximately $314 billion, a 6.5% increase from the previous fiscal year.
But investing in Toyota stock -- like any investment -- comes with potential drawbacks and risks. The auto industry is inherently cyclical, meaning its performance tends to be closely tied to the overall economy. During economic downturns, demand for new vehicles can decline, affecting Toyota's sales and profitability. Toyota operates in a highly competitive global market, too, so it faces challenges from everyone from established automakers to new entrants focused on EVs.
Toyota will need to continue to effectively respond to rapid changes in the market, including shifts in consumer preferences towards EVs, to maintain its competitiveness and market share. If you want to invest in a less cyclical space than the automotive industry, you may decide that Toyota is not the right choice for your portfolio.
Is Toyota Motor stock profitable?
Yes, Toyota Motor is generally a very profitable company. The company reported a net income of 4.765 trillion yen (approximately $31.1 billion) for the 2025 fiscal year. This was a decline from the 4.9 trillion yen ($34.1 billion USD) reported in 2024. For the company’s fiscal 2026, Toyota forecasts another decline in net income, falling by about 34% to 3.1 trillion yen (approximately $21.6 billion).
These shifts are due to a combination of factors, including higher material prices and the impact of tariffs. Despite the challenges, the company’s financial performance remains strong overall, and Toyota has maintained its forward-looking sales forecasts.
Does Toyota Motor stock pay a dividend?
Yes, Toyota has a long history of paying out dividends, and regularly boosting its payout. The current dividend yield is around 3.9%, while the company pays a forward annual dividend rate of just shy of $7 per share.
ETFs with exposure to Toyota Motor stock
Several ETFs hold shares of Toyota Motor stock, including the Avantis International Large Cap Value ETF (AVIV +0.60%) and the SPDR S&P Kensho Smart Mobility ETF (HAIL +1.73%). Other ETFs with exposure to Toyota Motor include the ActivePassive International Equity ETF (APIE +0.62%) and the Avantis International Equity ETF (AVDE +0.73%).
Exchange-Traded Fund (ETF)
Will Toyota Motor stock split?
Toyota has split its stock multiple times through its company history. The most recent stock split occurred in October 2021, which was a 5-for-1 split.
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The bottom line on Toyota Motor stock
Toyota is a profitable company with a strong history of revenue growth and consistent innovation. Not only has the transportation company consistently beat analyst earnings estimates through the years, but Toyota consistently pays a dividend to its shareholders.
The company's commitment to maximizing shareholder value through stock repurchases and dividend increases could make it appealing to some investors who want to own a slice of a company that remains one of the leaders in the global automotive market.
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