Ford Motor Firm (NYSE: F) has an extended historical past of paying stable dividends. Whereas Ford is a cyclical firm, and has needed to lower or droop its dividend occasionally, it has all the time prioritized paying a dividend at any time when it may afford to take action.
One purpose for that: the Ford household. The descendants of founder Henry Ford management about 40% of the corporate by way of a particular class of inventory. Whereas that class of shares has further voting privileges, it pays the identical dividend as Ford’s common frequent inventory.
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If Ford cuts its dividend, all of its shareholders really feel the ache.
Ford most not too long ago lower its dividend in March 2020, when it was making ready to shut down most of its factories in North America and Europe on the onset of the COVID-19 pandemic. It reinstated the dividend late in 2021, initially at a decrease degree than it had paid earlier than the pandemic — however it has since raised the payout to $0.15 per share per quarter, or $0.60 per share per yr.
Until a serious disaster arises, I anticipate Ford to carry that degree and pay a complete of $0.60 per share in common dividends once more in 2025.
However which may not be all that shareholders can anticipate.
In recent times, when its outcomes have been good, Ford has paid a one-time particular dividend early within the yr along with its common quarterly funds. Just lately, these particular dividends have ranged from $0.05 per share (in 2017) to $0.65 per share (in 2023).
To be clear, Ford may or won’t select to pay a particular dividend in January 2025. (It did not pay one in any respect in 2019, 2020, 2021, or 2022.) But when it does, that will likely be a one-time fee that arrives early within the yr along with the corporate’s common $0.15 quarterly dividend, offering a pleasant efficiency increase for shareholders who select to reinvest the dividend (as most ought to).
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