Here's How Many Shares of Ford You Should Own to Get $1,000 in Yearly Dividends

Lawrence Rothman, CFA, The Motley Fool

Mon, Mar 10, 2025, 2:40 AM 2 min read

Ford Motor Company (NYSE: F) has paid quarterly dividends since 2012. The committee of directors resumed payments aft a hiatus since 2006 erstwhile the company's fiscal troubles mounted owed to slumping income and a ample indebtedness burden.

Hence, it's important to guarantee Ford tin proceed making payouts. Once you've done that, you tin spot however galore shares you request to ain if you're targeting $1,000 successful yearly dividends.

Ford has a 6.2% dividend yield, overmuch higher than the S&P 500 index's 1.3%. While that sounds enticing, precocious yields could awesome the institution whitethorn slash the payout.

After all, Ford's shares person dropped much than 22% successful the past twelvemonth done March 6, indicating immoderate capitalist consternation. The S&P 500 gained implicit 12% during this clip frame.

One mode to spot if a institution tin proceed paying dividends is to look astatine its escaped currency travel (FCF). Ford generated FCF of $6.7 billion, and it paid dividends of $3.1 billion.

On this basis, it appears the institution has plentifulness of cushion to proceed payments.

Ford presently pays a $0.15 per stock quarterly dividend, oregon $0.60 annually. It has kept that level changeless since 2023.

To person $1,000 successful dividends, you'd person to ain 1,667 shares. That's the $1,000 divided by the $0.60 per stock yearly dividend. With the banal astatine $9.90 arsenic of Mar. 7, that volition outgo astir $16,500.

The institution paid peculiar dividends successful 2023 and 2024 of $0.65 and $0.18 per share, respectively. However, since you can't foretell those payouts, the calculation focuses connected the regular, existent dividend. If the committee of directors sees acceptable to state peculiar dividends, you'll person a higher yearly amount, of course.

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Lawrence Rothman, CFA has nary presumption successful immoderate of the stocks mentioned. The Motley Fool has nary presumption successful immoderate of the stocks mentioned. The Motley Fool has a disclosure policy.

Here's How Many Shares of Ford You Should Own to Get $1,000 successful Yearly Dividends was primitively published by The Motley Fool