Ford Motor Company Overview
Ford Motor Company (NYSE: F) has a dividend yield of 4.56%, reflecting its commitment to shareholder returns despite generally disappointing growth and profits. Over the past five years, Ford’s total return stands at 85% as of December 9, significantly recovering from a dip following the COVID-19 pandemic. However, this performance lags behind the S&P 500, which has returned 100% over the same period.
In Q3, Ford outperformed Wall Street’s revenue and earnings expectations, contributing to its recent stock performance. However, the company’s growth has been modest, with automotive revenue increasing at just 2.4% annually from 2014 to 2024. Operating margins have averaged only 2.5% in the past five years, reflecting ongoing challenges in a competitive market.
Investors are cautioned to consider whether Ford qualifies as a high-quality investment, given its weak growth prospects and cyclical demand for vehicles, which may hinder its profitability during economic downturns. Analysts suggest exploring alternative investment avenues, especially as Ford did not make the top list of stocks recommended for growth potential.
