Toyota Motor Corporation (TM -1.15%) is one of the world’s largest automakers and a global leader in hybrids, fuel-efficient vehicles, and emerging EV and hydrogen technologies. The company recently surpassed 300 million vehicles produced and now generates more than half of its sales from electrified models.
If you're considering investing, here’s how to buy Toyota stock, what the company’s financials look like, and what to know before adding this auto giant to your portfolio.
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.
- Open a brokerage account: Log into your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Fund your account: Transfer money so you’re ready to invest.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- 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.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
About Toyota Motor
Toyota began in 1937 as a division of Toyoda Automatic Loom Works and has since grown into a multinational automaker operating brands such as Toyota, Lexus, Daihatsu, and Hino. The company went public in 1949 and expanded globally throughout the 1950s and 1960s, eventually becoming a dominant force in the U.S. market with models like the Corolla.
Toyota is known for its manufacturing innovation, most notably the Toyota Production System: a lean, efficiency-driven approach that transformed automotive production worldwide.
Today, Toyota is focused on:
- Hybrid leadership: Toyota pioneered hybrid technology with the Prius and continues expanding hybrid options across its lineup.
- Battery EV growth: While EVs represent a small share of its current sales, Toyota plans to scale production and reach 3.5 million EVs annually by 2030.
- Hydrogen technology: Toyota is also investing in hydrogen-powered transportation, including the Mirai sedan and hydrogen fuel-cell trucks and buses.
- Financial services: Toyota generates revenue not only through vehicle sales but also through a global lending and leasing business that supports dealers and customers.
Together, these businesses make Toyota one of the most diversified and financially resilient automakers in the world, with fiscal 2025 revenue of roughly $314 billion.
Should you invest in Toyota Motor stock?
Whether Toyota belongs in your portfolio depends on your goals, risk tolerance, and how you want to gain exposure to the auto industry. Toyota earns most of its revenue from global vehicle sales across passenger cars, trucks, and commercial vehicles, supported by a sizable financial services arm. Its scale and diversified product lineup help stabilize results in a typically cyclical industry.
Toyota may appeal to long-term investors who want exposure to a market leader with a strong balance sheet and a clear strategy for the future. The company dominates hybrid vehicles, is expanding its EV lineup, and is investing heavily in next-generation technologies like solid-state batteries and hydrogen fuel cells. For investors seeking a blend of stability, international diversification, and steady dividends, Toyota can be a compelling choice.
That said, auto stocks come with meaningful risks. Toyota faces intense competition from legacy automakers and pure EV players and operates in a sector highly sensitive to economic downturns, supply chain constraints, and shifting consumer demand. The company must also accelerate its EV transition to compete globally, especially as regulations tighten and buyers shift toward battery-electric vehicles.
If you’re looking for a less cyclical industry or faster-growth technology exposure, you may decide Toyota isn’t the best fit. But for investors seeking a durable global company with strong cash flow and ongoing innovation, Toyota remains one of the most resilient automakers in the world.
NYSE: TM
Key Data Points
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.
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.
The bottom line
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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