Is Ford Stock a Buy for Its Dividend?
Ford has a complicated history with its dividend but has now paid investors consistently since 2022.
Overview
Ford Motor Company's (NYSE: F) dividend history is one of severe ups and downs. From the Great Recession to the COVID-19 pandemic, Ford's dividend hasn't been immune to macroeconomic factors. Since 2022, however, the dividend has been consistent. So is it a buy now for income investors?
With the automaker's shares trading around $13, the dividend yield is impressively over 4.5%. That's well above the S&P 500 average. The $0.15-per-quarter cash payout hasn't grown since 2022, but Ford's financial picture is ultimately improving.
Details
Ford's management raised its full-year guidance recently to $10 billion to $11 billion in EBIT and adjusted free cash flow of $6 to $7 billion. This will cover the dividend with room to spare. The automaker also has significant liquidity on its balance sheet. While its EV unit is losing about $4 billion per year, the company is pivoting into energy storage, which could prove quite lucrative in the coming years.
Source
Originally published at www.fool.com.