Key Facts on Ford’s Dividend Status
Ford Motor Company (NYSE: F) currently offers a dividend yield of 5.2% and is expected to pay out approximately $3 billion in dividends for 2025. However, analysts are warning of a potential cut due to rising internal costs and tariffs impacting pre-tax earnings estimates, which increased from $1.5 billion to $2 billion in July. Ford’s adjusted free cash flow is predicted to be between $3.5 billion and $4.5 billion for the year, leading to a concerning payout ratio of roughly 86% at the lower end of guidance.
Despite concerns, Ford’s balance sheet shows over $28 billion in cash and $46 billion in liquidity, allowing room for continued dividend payments. Additionally, the Ford family’s significant stake in the company—including a preference for consistent dividend payments—balances pressure from competitors like General Motors, which recently increased its dividend. Analysts remain cautious about Ford’s ability to maintain its dividend, yet some believe the company will showcase resilience in the face of tariff challenges.
