Ford’s Dividend Under Pressure Amid Tariffs and Internal Challenges
Ford Motor Company's attractive 5.2% dividend yield faces growing scrutiny as analysts flag potential cuts. The automaker grapples with rising warranty costs and a $2 billion tariff hit—up from an earlier $1.5 billion estimate—threatening its pledge to return 40-50% of adjusted free cash FLOW to shareholders.
Second-quarter earnings revealed mounting quality issues, compounding financial strain. With $1.8 billion already paid in dividends during 2025's first half, sustaining the current $0.75 per share annual payout grows increasingly precarious as free cash Flow pressures mount.