Honda’s forecast annual dividend for the fiscal year ending March 31, 2027 is ¥70 per common share: a planned ¥35 interim payment and ¥35 year-end payment. The forecast was unchanged in the company’s August 5 first-quarter release, even though Honda reported a loss in the prior fiscal year. The important distinction is that this is a forecast under Honda’s new dividend-on-equity framework, not a guaranteed cash payment or a statement about the share price.
For an international reader researching Honda Motor’s Tokyo listing (TSE:7267), the useful question is not simply whether the number is unchanged. It is why management can maintain it, what it is benchmarking, and what could still change before payment.
Key Takeaways
- Honda forecasts ¥70 per common share for FY2027 (year ending March 31, 2027), split between ¥35 interim and ¥35 year-end payments.
- The FY2027 dividend forecast was unchanged in the August 5 Q1 update. Honda introduced a 3% target for dividend on adjusted equity attributable to owners of the parent (DOE) to pursue more stable and continuous payments.
- FY2026 ended with a ¥423.9bn loss attributable to owners, yet Honda paid ¥70 per share. That makes a conventional payout ratio unhelpful for that year; Honda reported DOE of 2.4% instead.
- Honda’s Q1 FY2027 operating profit was ¥530.8bn, and it raised its full-year operating-profit forecast to ¥650bn. Management also flagged uncertainty around sales volumes, material costs and the Middle East.
What Honda has actually forecast for FY2027
Honda’s August 5, 2026 consolidated results list a ¥35 forecast for the second-quarter-end dividend and ¥35 for the fiscal year-end dividend, or ¥70 in total. The company said there had been no revision to the most recently announced dividend forecast. Those are forecast amounts; the Q1 release does not specify payment dates.
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| Fiscal year ending March 31 | Interim dividend per share | Year-end dividend per share | Total dividend per share | Status | Source |
|---|---|---|---|---|---|
| 2025 | ¥34 | ¥34 | ¥68 | Paid | Honda FY2026 results |
| 2026 | ¥35 | ¥35 | ¥70 | Paid | Honda FY2026 results |
| 2027 | ¥35 | ¥35 | ¥70 | Forecast | Honda Q1 FY2027 results |
For the practical mechanics of Japanese record dates and payment timing, see ATG Press’s guide to Japan dividend payment dates. A declared amount, the ex-dividend date and the cash-payment date are separate events.
Why the ¥70 forecast survived FY2026’s loss
Honda reported a FY2026 loss attributable to owners of ¥423.9bn, compared with a ¥835.8bn profit in FY2025. It nevertheless paid ¥70 per share, after paying ¥68 per share in FY2025. The FY2026 results show a dash rather than a conventional consolidated payout ratio for the loss-making year, while reporting a 2.4% ratio of dividends on equity attributable to owners.
That presentation matters. A payout ratio divides dividends by earnings, so it can become meaningless or misleading when earnings are negative. Honda’s alternative reference is DOE, which it defines as dividend on adjusted equity attributable to owners of the parent, excluding other components of equity. The company says it will strive for DOE of 3.0% from FY2026 to support more stable and continuous returns.
The policy does not make the ¥70 amount automatic. It gives readers a better framework for asking how the dividend relates to the company’s equity base rather than treating a single year’s earnings as the sole constraint. Honda still describes the policy as a target and says actual results can differ from forward-looking assumptions.
The Q1 recovery helps context, but it is not a dividend guarantee
In the three months to June 30, 2026, Honda reported revenue of ¥6,061.5bn and operating profit of ¥530.8bn, up 13.5% and 117.4% year on year, respectively. Management called this a record quarterly operating profit. It revised its FY2027 operating-profit forecast up by ¥150bn to ¥650bn, reflecting a revised ¥155-per-US-dollar exchange-rate assumption.
Honda also reported ¥3.3tn of net cash in its non-financial-services businesses at the end of the quarter. That is useful balance-sheet context, but it should not be read as cash earmarked for dividends: automaking, financial services, investment, debt and share repurchases compete for capital.
The company’s own Q1 presentation identifies uncertainties around sales volumes, material costs and the Middle East. It also continues to include EV-related losses in its full-year outlook. The clean research conclusion is narrower: the Q1 disclosure supports the *current* ¥70 forecast and explains the capital-policy framework; it does not prove the eventual distribution.
Honda’s dividend policy versus a payout-ratio shortcut
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| Measure | FY2025 | FY2026 | FY2027 forecast | How to read it |
|---|---|---|---|---|
| Dividend per common share | ¥68 | ¥70 | ¥70 | FY2027 remains a forecast. |
| Consolidated payout ratio | 38.0% | Not meaningful / not shown | 104.8% | A ratio can be distorted when reported earnings are negative or low. |
| Dividend on equity attributable to owners | 2.5% | 2.4% | Not disclosed | Honda’s stated benchmark is 3.0% adjusted DOE, a related but separately defined measure. |
| Profit attributable to owners | ¥835.8bn | -¥423.9bn | ¥400bn | FY2027 is management guidance, not a result. |
The two DOE labels should not be collapsed into one. The FY2026 financial-results table reports dividends as a share of equity attributable to owners, while Honda’s policy target refers to adjusted equity, excluding other components of equity. That technical distinction is one reason the company’s published 2.4% should not be reverse-engineered into a claim that it has already achieved a 3.0% target.
Which Honda security is this dividend for?
The ¥70 figure is per Honda common share. Honda’s ordinary shares trade in Tokyo under securities code 7267. Its American Depositary Shares (ADSs) trade in New York; Honda’s FY2026 results state that one ADS represents three common shares. Depositary-bank fees, currency conversion, local withholding and a holder’s tax position can affect what an ADS holder actually receives.
Readers comparing the two listings can use ATG Press’s Toyota TM versus TSE 7203 listing guide for the research method: check the underlying-share ratio, trading currency, hours, fees and voting mechanics instead of comparing headline prices alone. For ticker conventions and identifiers, see the Japanese stock tickers, ADRs and TSE codes guide.
Honda stock chart: ordinary shares in Tokyo
The chart is a price-reference tool for Honda’s Tokyo ordinary shares, not the source for dividend or financial claims. Market data can be delayed; check Honda’s investor-relations releases for corporate actions.
What to check next
1. Interim results and board action: The ¥35 interim amount remains a forecast until Honda formally decides it. 2. The FY2027 full-year forecast: Watch whether operating-profit, cash-flow and exchange-rate assumptions change. 3. DOE disclosures: Look for any updated definition, target language or progress against the 3% adjusted-DOE benchmark. 4. Capital allocation as a whole: Honda says it will consider treasury-stock acquisitions as appropriate. That is not a pre-announced buyback.
Sources
- Honda: Consolidated Financial Results for the Fiscal First Quarter Ended June 30, 2026 (IFRS), August 5, 2026
- Honda: Fiscal First Quarter Ended June 30, 2026 Financial Results Presentation with script, August 5, 2026
- Honda: Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (IFRS), May 14, 2026
- Honda CFO Messages: shareholder returns and capital policy
This article is for informational purposes only and does not constitute investment advice.
