Ford Motor Company (NYSE: F) has a forward dividend yield of around 4.6%. Alongside its regular quarterly cash dividend of 15 cents per share, the automaker issues special dividends when the company achieves higher cash flow and profitability.
It’s difficult to predict when Ford will pay out these special dividends. Based solely on the dividend, should dividend-focused investors make this a long-term holding?
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Ford’s dividend history and recent fiscal performance offer clues
In the last 20 years, Ford has suspended its dividend twice: In 2007, ahead of the Great Recession, and in the aftermath of the COVID-19 outbreak in 2020. While Ford reinstated its dividend within two years of the pandemic, the earlier suspension lasted over five years. Put simply, Ford is willing to pull the dividend when times get tough.
That said, Ford’s regular dividend appears well-covered. Based on current earnings forecasts, Ford has a forward payout ratio of just 30.6%, far lower than many popular dividend stocks. Management’s full-year 2026 guidance calls for adjusted free cash flow of between $6 billion and $7 billion. Based on a current share count of around 4 billion outstanding, Based on a current outstanding share count of around 4 billion, Ford’s 60 cents per share in annual dividends account for just 34% to 40% of this free cash flow figure.
Why I wouldn’t buy for the dividend alone
Numerous headwinds have weighed on the automaker’s profitability and price performance, including inflation, the rollback of its vehicle electrification pivot, and, more recently, tariffs. If these issues continue to ease, enabling Ford to report positive GAAP earnings in 2026 and 2027, the stock, trading at just 7 times forward earnings today, could re-rate to a higher earnings multiple.
However, would I buy Ford as a “set it and forget it” dividend stock? Given the cyclicality of both its operating and stock price performance, plus the risk that ongoing geopolitical and economic uncertainty drives the next “black swan event,” not to mention Ford’s poor track record of dividend growth, this is not a strong choice for dividend-focused investors.
Should you buy stock in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, consider this:
