Ford Motor Company Financial Update
Ford Motor Company (NYSE: F) announced a significant special dividend of $0.65 per share in 2023, complementing its regular quarterly dividend of $0.15. The company’s traditional dividend yield is currently over 4%, but its future supplemental dividends may be at risk due to projected financial challenges, including a $1 billion net tariff headwind and another $1 billion loss from a supplier fire.
Ford’s cash flow is under pressure, with a $19.5 billion charge anticipated from a pivot away from electric vehicles and an additional $5.5 billion in costs expected over the next two years. Despite strong past performance in issuing supplemental dividends, these new financial strains may hinder Ford’s ability to continue this trend, potentially ending a three-year streak of additional payouts.
