Ford Motor Company Overview
Ford Motor Company (NYSE: F) is facing challenges despite its position as the best-selling vehicle brand in the U.S., particularly with its F-Series pickup trucks retaining this title for 44 consecutive years. Nonetheless, Ford’s stock has underperformed the market, yielding a total return of 63% over the past five years compared to an 87% return for the S&P 500.
In December, Ford reported a substantial $19.5 billion charge related to its electric vehicle segment, while also grappling with quality issues, as evidenced by 152 recalls last year. Additionally, tariff-related costs negatively impacted earnings by $2 billion in 2025, a trend expected to continue. The current dividend yield stands at 4.25%, appealing to income investors amidst these difficulties.
Looking forward, analysts predict that Ford’s stock will likely continue to underperform, as long-term revenue and profit growth remain uncertain, making it a less attractive option for investors compared to other potential stock opportunities.
