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DEARBORN, Mich. - Ford Motor Company (NYSE:F) announced on Monday that its board of directors has declared a regular dividend for the second quarter. The dividend of 15 cents per share, representing an attractive 7.47% yield according to InvestingPro data, will be distributed on common and Class B stock.
The payment is scheduled for June 2 to shareholders who are on record by the close of business on May 12. This declaration marks Ford’s 14th consecutive year of dividend payments, demonstrating the company’s long-standing commitment to shareholder returns.
Ford Motor Company, a prominent player in the automotive industry with annual revenue of $185 billion, operates globally with a diverse range of vehicles, including trucks, sport utility vehicles, commercial vans, cars, and luxury vehicles under the Lincoln brand. Trading at a modest P/E ratio of 6.77, the company’s Ford+ plan aims to leverage its strengths and foster customer loyalty through enhanced experiences and innovative services.
Ford’s commitment to innovation is evident in its segmented approach to the market, with Ford Blue focusing on traditional and hybrid vehicles, Ford Model e on electric vehicles and digital experiences, and Ford Pro offering specialized services for commercial clients. Additionally, Ford extends its financial services through Ford Motor Credit Company.
As an employer, Ford sustains a workforce of approximately 171,000 people worldwide. The company continues to emphasize its role in shaping a future where mobility is accessible to everyone.
This dividend announcement is based on a press release statement from Ford Motor Company and reflects the company’s ongoing financial strategies and shareholder engagement. InvestingPro analysis shows Ford maintaining a "GOOD" financial health score, with 12 additional key insights available to subscribers through their comprehensive Pro Research Report, offering deeper analysis of the company’s valuation and growth prospects.
In other recent news, Ford Motor Company has faced several developments impacting its operations and financial outlook. Citi has initiated coverage on Ford with a Neutral rating and a price target of $10.00, citing challenges such as uneven production in North America and significant losses in battery electric vehicle production. The firm’s analysis suggests that these issues could keep Ford’s guidance uncertain, particularly with potential tariff impacts. In addition to these challenges, Ford has halted the export of luxury vehicles to China due to increased tariffs, which have surged to as much as 150% amid ongoing trade tensions.
Furthermore, Ford is dealing with a recall of approximately 105,322 SUVs, including Ford Expedition and Lincoln Navigator models, due to seat belt pretensioner concerns. The National Highway Traffic Safety Administration has stated that the seat belts may lock inadvertently, affecting safety. On a positive note, Ford ended 2024 with a net cash balance of $7.7 billion and is expected to generate surplus operating cash in the coming years. Despite these financial strengths, Ford’s pretax income from global auto operations has declined, with a further decrease forecasted by Citi for 2025.
In related industry news, Deutsche Bank has downgraded General Motors’ stock from Buy to Hold, citing structural uncertainties in U.S. industrial and tariff policies, which could also affect Ford. The automotive sector, including Ford, continues to navigate a complex policy landscape, with potential impacts on financial performance and guidance. These recent developments highlight the challenges and opportunities Ford faces in the current economic and regulatory environment.
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