Is Ford's dividend sustainable? (2025)

Is Ford's dividend sustainable?

The case for Ford

Is Ford a good dividend investment?

At its current share price and payout level, Ford offers a high-yielding dividend. The automaker has a spotty track record of paying dividends. While the company has some growth drivers, its future also has some significant question marks.

Is dividend income sustainable?

Companies that consistently pay dividends are often financially stable and can provide a reliable income stream.

Is Ford paying a special dividend in 2024?

Ford also announced a regular first-quarter dividend of 15 cents a share plus a supplemental dividend of 18 cents, to be paid on March 1. The company said it targets distributions to shareholders of 40% to 50% of adjusted free cash flow, which the automaker pegs at between $6 billion and $7 billion in 2024.

Is Ford a good long term stock?

Wall Street analysts are slightly bullish on Ford stock heading into 2024, and it has received a consensus rating of “Moderate Buy.” Of the 14 analysts covering F stock, 6 rate it as a “Strong Buy” while 2 more call it a “Moderate Buy.” Four analysts rate it as a “Hold,” while the remaining 2 say it's a “Strong Sell.” ...

Why is Ford's dividend yield so high?

Ford's dividend yield currently sits at a juicy 5.61%, and that's largely because the stock has consistently declined from just over $15 in late June. That puts its price-to-earnings ratio at a modest 7 times earnings.

What are the safest dividend stocks?

Kinder Morgan (NYSE: KMI), Equinix (NASDAQ: EQIX), and Lockheed Martin (NYSE: LMT) are three super-safe dividend stocks because they generate contractually secured cash flow and have strong financial profiles. That makes them great options for those seeking to fortify their dividend income in 2024 and beyond.

How to make $5,000 a month in dividends?

To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.

How do you know if a dividend is sustainable?

You can calculate this ratio by dividing the annual dividend per share by the annual earnings per share. So, for example, if a company has an annual dividend per share of $2 and an annual EPS of $5, the dividend payout ratio is 40%. A 40% payout ratio suggests that the dividend is sustainable.

How do you make $100 a month in dividends?

If you want $100 in monthly dividend income put $15,853 to work in a combination of Realty Income (NYSE: O) and SL Green Realty (NYSE: SLG). Both real estate investment trusts, or REITs, have seen their share prices beat up in a high-interest-rate environment, but now may be a great time to buy shares.

How much was Ford's last dividend?

For the current first quarter, the automaker declared regular of 15 cents per share and a special dividend of 18 cents per share, payable March 1 to shareholders at the close of Feb. 16.

When did Ford pay its last dividend?

Dividend FAQ

Ford Motor Company's latest ex-dividend date was on October 31, 2023 . The F stock shareholders received the last dividend payment of $0.15 per share on December 1, 2023 . Ford Motor Company's next dividend payment has not been announced at this time.

What is the most recent Ford dividend?

Accordingly, the company today declared a first-quarter regular dividend of 15 cents per share and a supplemental dividend of 18 cents per share.

Could Ford stock hit $100?

To be fair, it wouldn't be prudent to expect Ford to reach $100 anytime soon, and even Toyota Motors (TM) - which is the most valuable legacy automaker - has a market cap below $300 billion. Another analogy, however, could be the comparison with Tesla (TSLA), which currently has a market cap of around $700 billion.

Is Ford stock worth keeping?

Ford Motor has 10.79% upside potential, based on the analysts' average price target. Is F a Buy, Sell or Hold? Ford Motor has a conensus rating of Hold which is based on 6 buy ratings, 5 hold ratings and 3 sell ratings.

Is Ford a safe stock to buy?

Investors are going to have to be very patient for Ford to turn around its manufacturing and design cost problems. However, they get a respectable dividend payout yielding nearly 6% as of early November. We think the payout is safe too, barring a major recession like the ones seen in 2008 or 2020.

Is Ford increasing dividend?

The company announced it would give shareholders a second, supplemental dividend that will more than double the regular dividend they usually receive. The regular dividend is 15 cents a share. The special dividend is 18 cents a share.

What stock pays the highest dividend yield?

What is one of the highest paying dividend stocks?

Is there a downside to dividend investing?

One downside to investing in stocks for the dividend is an eventual cap on returns. The dividend stock may pay out a sizable rate of return, but even the highest yielding stocks with any sort of stability don't pay out more than ~10% annually in today's low interest rate environment, except in rare circumstances.

What are the three best dividend stocks?

Is there a downside to dividend stocks?

The Risks to Dividends

In other words, dividends are not guaranteed and are subject to macroeconomic as well as company-specific risks. Another potential downside to investing in dividend-paying stocks is that companies that pay dividends are not usually high-growth leaders.

How much money do I need to invest to make $1 000 a month in dividends?

For example, if the average yield is 3%, that's what we'll use for our calculations. Keep in mind, yields vary based on the investment. Calculate the Investment Needed: To earn $1,000 per month, or $12,000 per year, at a 3% yield, you'd need to invest a total of about $400,000.

How much money do I need to invest to make $3 000 a month in dividends?

A well-constructed dividend portfolio could potentially yield anywhere from 2% to 8% per year. This means, to earn $3,000 monthly from dividend stocks, the required initial investment could range from $450,000 to $1.8 million, depending on the yield. Furthermore, potential capital gains can add to your total returns.

How much to invest to get $4,000 a month in dividends?

But the truth is you can get a 9.5% yield today--and even more. But even at 9.5%, we're talking about a middle-class income of $4,000 per month on an investment of just a touch over $500K. Below, I'll reveal how to start building a portfolio that could get you an even bigger income stream than this today.