April 14, 2025 a 06:46 am
F: Dividend Analysis - Ford Motor Company
Ford Motor Company, with a rich history in automobile manufacturing, presents a complex dividend profile marked by a robust yield and a long dividend history. However, investors should consider recent fluctuations in payout ratios and growth metrics when evaluating the stock. Its blend of stability and volatility in dividend payments makes it a compelling, albeit intricate, choice for dividend-focused portfolios. Despite challenges, Ford continues to offer a promising income potential.
📊 Overview
Based in the automobile sector, Ford provides investors with a significant dividend yield of 8.07%, supported by a current dividend payout of $0.78 per share. The company boasts a commendable 48-year history of consistent dividend payments, with no recent reductions or suspensions, reflecting its commitment to return value to shareholders.
| Metric | Value |
|---|---|
| Sector | Automobile |
| Dividend Yield | 8.07 % |
| Current Dividend Per Share | $0.78 |
| Dividend History | 48 years |
| Last Cut or Suspension | None |
📈 Dividend History
Understanding Ford's dividend history is crucial for assessing the reliability and consistency of its payments. Historically, Ford has demonstrated a stable commitment to returning capital to shareholders, underscored by a steady dividend over nearly half a century.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.30 |
| 2024 | 0.63 |
| 2023 | 1.10 |
| 2022 | 0.50 |
| 2021 | 0.10 |
🗣️ Dividend Growth
Analyzing dividend growth rates over the past three and five years provides insight into potential returns. Ford's dividend growth over the last three years stands at 0.85%, while the five-year growth is slightly negative at -0.03%, indicating a moderate but cautious growth approach.
| Time | Growth |
|---|---|
| 3 years | 0.85 % |
| 5 years | -0.03 % |
The average dividend growth is -0.03% over 5 years. This shows moderate but steady dividend growth.
💹 Payout Ratio
Payout ratios are critical for evaluating the sustainability of dividends. Ford's EPS-based payout ratio is 53.02%, and its FCF-based ratio is 45.43%. These figures suggest that dividend distributions are moderately funded through earnings and cash flow, warranting careful examination for future stability.
| Key Figure | Ratio (%) |
|---|---|
| EPS-based | 53.02 % |
| Free cash flow-based | 45.43 % |
The moderate payout ratios indicate a stable dividend supported by earnings and free cash flow, yet close monitoring is advisable given the automotive industry's volatility.
🏦 Cashflow & Capital Efficiency
Examining cashflow and efficiency metrics reveals insights into Ford's financial health and operational productivity. Consistent free cash flow yield and earnings yield indicate robust internal funding capabilities, while ratios like CAPEX to operating cash flow highlight capital management efficacy.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 17.11 % | 13.71 % | -0.03 % |
| Earnings Yield | 14.93 % | 8.92 % | -4.61 % |
| CAPEX to Operating Cash Flow | 56.31 % | 55.21 % | 100.19 % |
| Stock-based Compensation to Revenue | 0.28 % | 0.26 % | 0.21 % |
| Free Cash Flow / Operating Cash Flow Ratio | 43.69 % | 44.79 % | -0.19 % |
The data demonstrates Ford’s efforts to balance capital expenditures with cash generation, a positive indicator of future dividend sustainability and growth opportunities.
⚖️ Balance Sheet & Leverage Analysis
Analyzing balance sheet and leverage statistics provides a picture of Ford's financial stability and risk. The various ratios suggest a significantly leveraged position, necessitating strategic management to uphold financial health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 3.59 | 3.53 | 3.25 |
| Debt-to-Assets | 56.40 % | 55.29 % | 54.90 % |
| Debt-to-Capital | 78.20 % | 77.94 % | 76.46 % |
| Net Debt to EBITDA | 9.70 | 10.68 | 24.35 |
| Current Ratio | 1.16 | 1.20 | |
| Quick Ratio | 1.03 | 1.04 | 1.06 |
| Financial Leverage | 6.36 | 6.39 | 5.92 |
Ford’s leverage ratios reflect an elevated debt profile, indicating aggressive capital structures that could impact future flexibility unless managed prudently.
📊 Fundamental Strength & Profitability
Understanding Ford's profitability ratios highlights its ability to generate earnings relative to sales, assets, and equity. Although these margins fluctuate, they underscore key strengths and challenges in its operational efficiency.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.11% | 10.16% | -4.98% |
| Return on Assets | 2.06% | 1.59% | -0.84% |
| Net Margin | 3.18% | 2.47% | -1.36% |
| EBITDA Margin | 7.70% | 6.71% | 3.00% |
| R&D to Revenue | N/A | 4.65% | 4.93% |
These statistics suggest areas for improvement in cost management and operational efficiencies which could significantly boost profitability and shareholder returns.
🔍 Price Development
📝 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 5 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 2 |
Total Score: 26/40
🏅 Rating
Ford Motor Company exhibits a strong dividend profile, highlighted by a generous yield and consistent history. However, concerns over growth sustainability and leverage must be carefully monitored. Overall, Ford remains a noteworthy choice for income-focused investors seeking exposure to the automotive sector with calculated risks.