Here’s How Many Shares of Ford Stock You’d Need to Pocket $10,000 in Yearly Dividends
Ford's dividend yield just turned income investing into a math problem with a surprisingly simple solution.
The Blue Oval's payout strategy cuts through market noise—bypassing crypto volatility for cold, hard cash every quarter.
Crunching the numbers reveals exactly how many shares it takes to hit that five-figure passive income goal.
Dividend purists get their paychecks while speculators chase memecoins—because nothing says financial maturity like preferring actual money over internet tokens.
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Cheap valuation supports high dividend yield
Ford currently pays a quarterly dividend of $0.15 per share. This means that you'd have to own 16,667 shares to receive $10,000 in dividends on an annual basis. Exactly 10 years ago, the company paid $0.14 per share each quarter, so the dollar amount has barely budged.
Ford shares trade at a cheap valuation. Investors can buy the stock at a forward price-to-earnings ratio of just 8.6. This makes for a hefty dividend yield of 5.14%.
Influenced by macro forces
Investors shouldn't expect Ford stock to beat the market over the long term. And even though it pays a dividend, the income stream isn't always a sure thing.
That's because Ford's operations are extremely cyclical. A car is a huge purchase decision for a household, with economic conditions and interest rates both key factors. In a recessionary scenario, for instance, Ford's sales are likely to take a hit. And with it, profits will be under pressure. Ford might even start to post net losses, forcing the management team to reduce or even pause dividend payments. Investors should keep this possibility in mind.