Better Dividend Stock: Ford or Toyota?

If you want to diversify your portfolio, generate income, or grow your capital, dividend stocks may seem like a good option. But not all dividend stocks are worth your money.

Many of them lose value over time, especially if you spend the dividends instead of reinvesting them. That's why you need to double down on quality when selecting dividend stocks for your portfolio.

Two dividend-paying car manufacturers that tick the quality box are Ford Motor Company (NYSE: F) and Toyota Motor Corporation (NYSE: TM). Both companies have strong demand for their products, robust free cash flow, and attractive dividend yields.

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Source Fool.com