Ford Motor Company (F) Offers 4.2% Dividend Yield with Potential for Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Dividend Yield Advantage: Ford's dividend yield of approximately 4.2% stands out in the highly competitive automotive industry, attracting income-seeking investors and enhancing its market appeal.
- EV Business Challenges: Despite a loss exceeding $5 billion in its electric vehicle division in 2024, Ford is addressing these challenges through efficiency improvements and cost reductions, with significant enhancements expected in the coming years that could provide funding for dividend increases.
- Cash Flow Distribution Strategy: Ford aims to distribute 40% to 50% of its annual free cash flow to shareholders, and when cash flow surges, it issues supplemental dividends, a strategy that not only boosts shareholder confidence but may also elevate the company's stock price.
- Family Shareholding Impact: The Ford family's substantial ownership of special shares ensures their influence in company decisions and dividend income, fostering a focus on shareholder value return that further solidifies investor confidence.
Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 12.46 USD with a low forecast of 10.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 13.810
Low
10.00
Averages
12.46
High
15.00
Current: 13.810
Low
10.00
Averages
12.46
High
15.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
