When does Ford Pay Dividends? Ford Motor Company’s (F) dividend yield is 5%, which means that for every $100 invested in the company’s stock, investors would receive $5.00 in dividends per year.
Ford Motor Company’s payout ratio is 120.79% which means that 120.79% of the company’s earnings are paid out as dividends. A low payout ratio may indicate that the company has a strong financial position and can invest in growth opportunities, while a high payout ratio may indicate that the company is returning most of its earnings to shareholders. F’s annual dividend is $0.60 per share. This is the total amount of dividends paid out to shareholders in a year.
When does Ford Pay Dividends?
Ford usually distributes its dividends in the months of March, June, September, and December.
The Ford board of directors determines the precise date of each dividend payment and announces it in the press release announcing the dividend.
Dividend History and Growth
Ford Motor Company (F) dividend payments per share are an average of 100.00% over the past 12 months, 10.06% over the past 36 months, 0.00% over the past 60 months, and 7.18% over the past 120 months.
It is important to note that F’s dividend history and growth can be affected by many factors, such as profitability, cash flow, and financial stability, as well as its growth prospects and dividend payout policies. Add F to your watchlist to be aware of any updates.
We Wouldn’t Be Too Quick To Buy Ford Motor Company
Some investors rely on dividends for growing their wealth, and if you’re one of those dividend sleuths, you might be intrigued to know that Ford Motor Company (NYSE:F) is about to go ex-dividend in just 4 days.
The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company’s books in order to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Meaning, you will need to purchase Ford Motor’s shares before the 24th of July to receive the dividend, which will be paid on the 1st of September.
The company’s next dividend payment will be US$0.15 per share, on the back of last year when the company paid a total of US$0.60 to shareholders. Calculating the last year’s worth of payments shows that Ford Motor has a trailing yield of 4.2% on the current share price of $14.17. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. Ford Motor’s earnings per share have fallen at approximately 18% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend.
Many investors will assess a company’s dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Ford Motor has lifted its dividend by approximately 12% a year on average. That’s intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. Ford Motor is already paying out 76% of its profits, and with shrinking earnings we think it’s unlikely that this dividend will grow quickly in the future.
What is the latest dividend declared by Ford Motor Co.?
On July 13, 2023, Ford Motor Company announced its most recent dividend, which was payable on September 1, 2023, at a rate of 15 cents per share.
Why Ford and GM Should Lift Their Dividends
Strikes, new technology, new competition. It all conspires to keep a lid on the stock performance of Ford Motor and General Motors, the last two traditional North American auto makers. But there is a way to boost shareholder returns that has nothing to do with designing the next hit EV. The companies can afford to pay higher dividends.
The United Auto Workers won’t like it. The union was initially seeking a 40% raise over four years, and it has already taken issue with GM (ticker: GM) and Ford (F) returning cash to shareholders. “Over the last four years, [auto makers] have poured billions into stock buybacks and special dividends to enrich themselves,” UAW President Shawn Fain said in an address to membership on Sept. 8. The UAW launched strikes at GM, Ford, and Stellantis (STLA) plants after the labor agreement expired on Thursday at 11:59 p.m.
Fain is correct about one thing: Both companies pay dividends. That isn’t unusual for mature companies. What’s more, Ford and GM have returned less cash over the past few years compared with cash spent during the prior labor contract, due to the effects of Covid. Both companies halted dividends in 2020 amid global turmoil, though Ford resumed paying its quarterly dividend in 2021 at the prepandemic level. GM resumed payouts in 2022 but with a cut to nine cents a share from 38 cents.
GM has been more conservative for some time. Between 2019 and 2022, it spent about $3.6 billion cumulatively on dividends, down from about $9 billion between 2015 and 2018. Ford spent about $5.4 billion cumulatively on dividends between 2019 and 2022, less than half of the $11.2 billion it handed out between 2015 and 2018.
Neither company has a money problem. GM generated about $34 billion in adjusted free cash flow between 2019 and 2022, according to Bloomberg, compared with about $29 billion between 2015 and 2018. So GM paid out about 11% of adjusted free cash flow as dividends in the most recent four calendar years, down from 32% during the prior four-year span. For S&P 500 companies, that ratio averages around 50%.
Ford generated about $38 billion in adjusted free cash flow between 2019 and 2022, with 14% of that paid out as dividends. That was after generating $40 billion in free cash flow between 2015 and 2018, with 28% paid out as dividends.
Looking ahead, Wall Street projects some mild profit deterioration for each, mainly because prices for new cars are expected to moderate from pandemic-induced highs. The change, though, isn’t dramatic.
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