Ford Motor Company (NYSE: F) Has paid every three -month dividends since 2012. The board of directors has resumed payments since an interruption since 2006 when the financial problems of the company were mounted as a result of slumps and a large debt.
That is why it is important to ensure that Ford can continue to pay. Once you have done that, you can see how many shares you should possess if you focus on $ 1,000 in annual dividends.
Ford has a dividend yield of 6.2%, much higher than the S&P 500 Index is 1.3%. Although that sounds tempting, high yields can indicate that the company can lower the payment.
After all, the shares of Ford have fallen by more than 22% in the past year until 6 March, which indicates some investor conservation. The S&P 500 won more than 12%during this time frame.
One way to see if a company can continue to pay dividends is by looking at its free cash flow (FCF). Ford generated FCF of $ 6.7 billion and paid dividends of $ 3.1 billion.
Based on this, the company seems to have a lot of kisses to continue payments.
Ford currently pays a quarterly dividend of $ 0.15 per share, or $ 0.60 per year. It has kept that level constant since 2023.
To receive $ 1,000 in dividends, you must have 1,667 shares. That is the $ 1,000 divided by the annual dividend of $ 0.60 per share. With the shares at $ 9.90 from 7 March it will cost around $ 16,500.
The company paid special dividends in 2023 and 2024 of $ 0.65 and $ 0.18 per share respectively. However, because you cannot predict these payouts, the calculation focuses on the regular, current dividend. If the Board of Directors considers it necessary to explain special dividends, you will of course receive a higher annual amount.
Consider this: Before you buy shares in Ford Motor Company:
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Lawrence Rothman, CFA has no position in one of the aforementioned shares. The Motley Fool has no position in one of the aforementioned shares. The Motley Fool has a disclosure policy.
This is how many Ford shares you have to possess to get $ 1,000 in annual dividends, was originally published by the Motley Fool
