Ford Motor Company (F 4.45%) stock has lost nearly 26% value in one year, as of this writing. The steep fall has driven the stock’s dividend yield up to a juicy 6.5%, based on its April 11 closing price of $9.14 per share.
Even better, Ford stock’s yield jumps to 8.2% if you count the special dividend of $0.15 per share it paid out on March 3 on top of its regular quarterly dividend of $0.15 a share.
That’s a massive dividend yield for a cyclical stock, and it won’t take much for income investors right now to earn $500 in yearly dividends from Ford stock.
Ford’s steady quarterly dividend per share of $0.15 means an annualized dividend of $0.60 a share. So buying 834 shares of Ford, or investing roughly $7,623 at Ford’s April 11 closing price, can earn you $500 in annual dividend from the auto stock.
Of course, you could earn more than $500 in yearly dividends from the same investment if Ford pays another special dividend. The automotive giant paid out supplemental dividends of $0.15, $0.18, and $0.65 per share in 2025, 2024, and 2023, respectively.
Is Ford’s dividend safe amid tariffs and the trade war?
Ford’s projected adjusted free cash flow (FCF) is only $3.5 billion to $4.5 billion for 2025, versus $6.7 billion last year. Meanwhile, the automaker is targeting an adjusted FCF dividend payout of 40% to 50%.
At this pace, even at $4.5 billion, Ford’s FCF could fall short of meeting its target payout to cover an annualized dividend of $0.60 per share. Ford could cut its dividend temporarily to navigate the storm, although it may not do so right away.
That’s because although tariffs on parts and imported vehicles could increase Ford’s costs significantly, the company builds 80% of its vehicles in the U.S. and still has a lot of cash. It could also postpone some growth spending for now — such as restarting operations in India — and preserve cash to maintain its dividends.
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.