Ford Motor Announces Quarterly Dividend of $0.15

Ford Motor (NYSE:F) revealed a quarterly dividend on Tuesday, October 29th. Shareholders who are on record as of Thursday, November 7th, will receive a dividend of $0.15 per share. This payment will be made by the auto manufacturer on Monday, December 2nd. This results in an annualized dividend of $0.60, offering a yield of 5.76%. Notably, the ex-dividend date is set for Thursday, November 7th.

Dividend Growth and Coverage

Ford Motor has shown impressive growth in its dividends, averaging an increase of 58.7% per year over the last three years. Currently, the company maintains a dividend payout ratio of 32.3%, suggesting its dividends are well supported by its earnings. Analysts project that Ford will earn approximately $1.84 per share next year, which would indicate that the company can comfortably sustain its $0.60 annual dividend while maintaining a future payout ratio of about 32.6%.

Current Stock Performance

On the trading day following the announcement, shares of Ford (NYSE:F) decreased by $0.96, reaching $10.41. The trading volume was 155,490,516 shares, significantly higher than the average of 53,715,914. At present, Ford has a market capitalization of $41.56 billion and a price-to-earnings (PE) ratio of 10.64. Its stock price has seen a 52-week low of $9.49 and a high of $14.85. Additionally, the company’s debt-to-equity ratio stands at 2.30, with a current ratio of 1.17 and a quick ratio of 1.00. The stock has a 50-day moving average of $10.84 and a 200-day moving average of $11.67.

Recent Earnings Report

Ford Motor recently disclosed its quarterly earnings on Monday, October 28th. The company reported an earnings per share (EPS) of $0.49 for the quarter, which surpassed the consensus estimate of $0.47 by $0.02. Ford achieved a net margin of 2.13% and a return on equity of 15.28%. Revenue for the quarter reached $46.20 billion, beating analysts' expectations of $45.13 billion. This figure represents a year-over-year increase of 5.5%, compared to the same quarter last year when Ford earned $0.39 EPS. Currently, analysts expect Ford to post 1.86 EPS for the current fiscal year.

Analyst Ratings and Future Expectations

A variety of equities research analysts have updated their views on Ford shares. For instance, Wells Fargo & Company reduced their price target from $10.00 to $9.00, labeling the stock as “underweight” as of September 10th. Wolfe Research began coverage of Ford with a “peer perform” rating in early September. StockNews.com upgraded Ford from a “sell” rating to a “hold” rating in early August. Evercore ISI also raised its position on Ford to “hold” in late July. Meanwhile, Morgan Stanley downgraded Ford from “overweight” to “equal weight” and adjusted their target price from $16.00 to $12.00. Overall, the stock has witnessed two sell ratings, ten hold ratings, and four buy ratings, leading to an average rating of “Hold” and an average target price of $12.48, according to MarketBeat.com.

About Ford Motor Company

Ford Motor Company is a major global player in the automotive industry, developing, delivering, and servicing an extensive range of Ford trucks, passenger vehicles and vans, SUVs, and Lincoln luxury cars worldwide. The company operates through various segments, including Ford Blue, Ford Model e, Ford Pro; Ford Next; and Ford Credit. Ford vehicles, along with spare parts and accessories, are distributed and sold through both dealers and distributors, including to commercial fleet customers, daily rental car firms, and government entities.

Ford, Dividend, Earnings