A to Z Academy
A to Z Academy / Stock

How to Buy Toyota Stock Now, Forecast and Dividend Guide

November 17, 2021 15:06

Automotive stocks have been on the rise lately, partly because most governments worldwide have set ambitious targets for reducing carbon emissions. These targets are essentially about replacing the conventional car fleet with electric cars. This will allow manufacturers who are able to make the most of the situation to make phenomenal gains. In this respect, Toyota stock is often cited as one of the best stocks to buy. The company is very advanced in electric vehicle technology, and it is one of the world’s largest automakers, both in terms of market capitalization and annual sales volume.

In this analysis, we will study the recent and historical evolution of Toyota’s share price. We will also look at its current news and fundamentals to determine if it is a good long-term investment. We’ll also look at the outlook for Toyota stock from a variety of angles, including from a technical analysis perspective. Finally, we’ll introduce you to an online broker that we think is ideal for buying Toyota stock.

Toyota Overview

Toyota’s history dates back to the 1920s, but for the sake of relevance, we will focus on its recent history. First of all, let’s remember that since the year 2020, Toyota has regained its position as the world’s largest car manufacturer in terms of sales volume, surpassing Volkswagen. Indeed, Toyota sold more than 9.5 million vehicles worldwide in 2020.

Note that the Toyota group includes its subsidiaries Daihatsu, Hino Motors and Isuzu. But in addition to being a leading conventional car manufacturer, Toyota is also developing a solid range of electric vehicles, and investing in autonomous driving projects. This therefore ideally positions Toyota stock to take advantage of the impending revolutions in the automotive industry.

While one might think that Toyota’s main competitor in electric vehicles is Tesla, the reality is quite different. Indeed, Tesla has a high-end positioning, while Toyota is known for its ability to produce low-cost cars. Indeed, Toyota is known for its ability to control costs thanks to a high level of operational efficiency, which allows it to post some of the highest margins in the industry.

So, while it is interesting to compare the two companies, they are not really competitors. As a result, Toyota stock can be an ideal complement to an investment in Tesla stock to cover all areas of the electric vehicle market, whether it’s at the entry level or the top end.

en stock trading and price

Toyota Stock History and Profile

The stock Toyota is listed in Japan and the United States. The Toyota stock symbol is TM, and it is listed on the NYSE under the ISIN code US8923313071. Note that Toyota shares are not included in any major US index.

Investors in Toyota stock (NYSE) benefit from a solid 2.5% dividend, something we’ll discuss in more detail later in this guide. It has a P/E of 9.3, which makes it a cheap stock by industry standards.

Historical Evolution of the Toyota Stock Price

The least we can say is that the Toyota stock history is reassuring. The long-term monthly chart shows indeed that the trend has been clearly upward since the mid-1970s.

The monthly chart above allows us to identify an uptrend line that has remained valid since 1986. The stock has of course experienced periods of correction in the course of its history, but they have never been sufficient to undermine the underlying positive trend.

Regarding the more recent evolution of Toyota’s share price, it should be noted that at the beginning of 2021 it managed to break through a resistance level of $140-145 that had been blocking its path since 2006. The break of such a long term support is undeniably a powerful bullish signal.

Note that this key breakout came at the end of a rally that started from a low of $108 in March 2020, and has so far peaked at an all-time high in August 2021, at $186, a 72% increase in 17 months.

Why Invest in Toyota Stock?

To begin our assessment of Toyota’s stock prospects, we will look below at its key strengths from a fundamental analysis and business model perspective.

Taking Advantage of the Inevitable Boom in Electric Cars

Toyota is one of the most advanced traditional automakers in the development of electric vehicle technologies. Investor attention is often focused on specialists such as Tesla. However, traditional automakers, and especially Toyota, will also benefit greatly from the electric vehicle revolution.

Indeed, the pure players of electric vehicles often operate on niche markets, such as luxury for Tesla. But they are only financially accessible to a minority of Americans. Therefore, in the long term, it is manufacturers such as Toyota that will more likely sell the most electric cars.

Toyota Is Also a Bet on Autonomous Driving

In addition to electric vehicles, the next revolution likely to revolutionize the automotive sector is autonomous driving. Now, Toyota has also made strides in this area, including a long-term partnership with an autonomous driving start-up, Aurora Innovation.

Aurora’s autonomous driving systems will be installed in Toyota Sienna minivans designed to develop an autonomous cab service.

A Solid and Reliable Toyota Stock Dividend

Finally, long-term investors will appreciate the fact that Toyota currently pays a dividend that corresponds to an annual yield of 2.8%.

Moreover, Toyota stock’s dividend has been steadily increased throughout its history, and there’s no reason why this can’t continue. Thus, Toyota stock (NYSE) is also suitable for investors who are looking for a retirement income supplement, for example, while remaining exposed to the potential of the electric vehicle market with limited risk.

Toyota Stock Forecast: Will the Stock Go Up?

Below, we will look at several concrete elements to see if Toyota stock price will go up in the coming months.

Toyota Stock Forecast : Financials

It’s important to note that Toyota’s revenue has exceeded analysts’ expectations in every quarter but 2 since Q3 2014. Few stocks can boast such an impressive history of exceeding expectations.

As for EPS, analysts are anticipating an average of $4.14, roughly double the EPS of the same quarter last year. However, Toyota also has a solid history of exceeding expectations on this metric.

Toyota Stock Forecast : Analysts Targets

There are currently 19 professional analysts that provide Toyota stock forecast. The majority, 11, advise buying the stock, and 8 post a neutral view. Reassuringly, no analysts recommend selling.

The average price target posted by these analysts is $209, which implies an upside potential of more than 12%. It is also worth noting that the most optimistic analyst for Toyota shares forecasts a rise to $237, which is 27% above Toyota’s current share price.

Toyota Stock Forecast: The Technical Picture

The long-term price action on Toyota stock price is clearly bullish, as can be seen on the weekly chart. The bullish trend is notably materialized by an ascending channel visible since March 2020. The moving averages also confirm a still developing uptrend, with an increasing gap between the 50, 100 and 200 day moving averages

However, in recent months, Toyota shares have been facing resistance at around $185. A break above this would open the way for a quick test of the $200 mark. On the downside, only a break below $160 would challenge the long-term uptrend. Overall, the Toyota stocks forecast are very positive from a technical point.

Where Can I Buy Toyota Stock?

There are many brokers in the market, but some are better than others. In the course of our research, we discovered that ZFX is one of the brokers that displays the most significant advantages. Established in 2018, this broker is relatively new, but that doesn’t take away from its qualities. Speaking about security and regulation, ZFX is a broker regulated by several financial authorities, including the UK FCA.

As far as the trading platform is concerned, ZFX offers the famous MT4 platform, which has been adopted by millions of traders worldwide. This platform offers all the essential tools for traders. It is also known as the best platform for automatic trading.

Finally, as far as accessible markets are concerned, ZFX offers to buy stocks, commodities, indices, and forex currency pairs.

en stock trading and price

How Can I Buy Toyota Stock Easily?

Buying Toyota stock through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes. All you have to do is follow these steps:

  • 1. Register with ZFX
  • 2. Verify your ZFX account
  • 3. Make your first deposit
  • 4. Buy Toyota stock

Let’s go through each of these steps in detail.

1 – Register with ZFX

For this first step, you will need to go to the ZFX broker’s website, and click on the “open an account” button. You will then have to fill in a registration form with several personal details, including your phone number, which will be verified by SMS.

Trade ATT- Step 1

After filling out the form, click on the “next” button at the bottom of the page.

buy Toyota stock with ZFX - basic info

Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform.

2 – Make your first deposit

You will then need to make your first deposit. To do this, simply click on the “Make a deposit” button on the screen displayed immediately after registration.

You can then choose a payment method. Let’s take Mastercard as an example:

buy Toyota stock with ZFX - deposit

On this screen you will need to indicate the deposit amount and then click on the “Confirm Deposit” button. You will then need to provide your credit card information before the final validation of the payment.

3 – Account Verification

Finally, it will also be necessary to proceed with the account verification by sending supporting documents.

buy Toyota stock with ZFX - account verification

As shown in the image above, you will need to upload the documents directly to the ZFX website.

4 – Buy Toyota Stock

Once ZFX has validated your documents, you will then be ready to buy Toyota stock through the ZFX MT4 platform.

Bottom Line: Should You Buy Toyota Stock?

Toyota’s exemplary stock market performance has reassured even the most cautious investors, while the company should be one of the big winners of the expected revolutions in the automotive sector. The total replacement of conventional vehicles by electric vehicles will indeed put the automotive sector on the front burner in the coming years, and Toyota is one of the safest bets in this field.

Moreover, there are several indications that a bullish future awaits Toyota stock. Financial performance is on track, analysts are mostly recommending buying, and charts show an upward trend across all time frames.

If you too would like to expose your portfolio to the bullish potential of the Toyota share, we invite you to learn more about the broker ZFX. For all the reasons we have mentioned in this guide, it is indeed an intermediary that seems ideal for buying Toyota stock and many others.

en stock trading and price

Knowledge is POWER
Never miss an opportunity to learn and grow as a trader. Join the ZFX Academy mailing list to be the first to know about our next webinar, article or guide.
Contact Us