Is Ford Stock a Buy for Its Dividend?

Ford Motor Company offers an attractive dividend yield of over 4.5%, well above the S&P 500 average. With management raising full-year EBIT guidance to $10-11 billion and adjusted free cash flow guidance to $6-7 billion, the dividend is well-covered. However, the quarterly payout of $0.15 per share has remained flat since 2022. The company's EV unit loses $4 billion annually, but Ford Energy's pivot into energy storage could drive future growth and potentially lead to dividend increases by late 2027.