Ford dividend: payment and cash coverage
Ford pays regular dividends of $0.60 per share annually. Its cash coverage was strained: free cash flow was negative in 2025 while dividends continued.
How much does Ford pay in dividends?
The base dividend remains $0.60 per share annually because Ford declared a regular quarterly dividend of $0.15 and paid regular dividends of $0.60 in both 2024 and 2025. The bear case gives $0.40 after a cut to $0.10 quarterly. The bull case gives $0.80 by adding a $0.20 supplement, which is possible after cash recovery but is not guidance.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | -2.06 | 1.46 | 1.08 | -0.49 | 4.45 |
| Free cash flow per share | -0.09 | 0.80 | 1.38 | 1.36 | -1.41 |
| − Dividends paid, per share | 0.75 | 0.78 | 1.24 | 0.50 | 0.10 |
| − Share buybacks, per share | 0.00 | 0.11 | 0.08 | 0.12 | 0.00 |
What this means. Ford's own free cash flow per share is higher because it excludes Ford Credit's operating cash flows and adjusts for items such as pensions and restructuring, while our count measures cash left after equipment spending.
Is Ford's dividend covered by its cash?
Ford paid out 95.5% of free cash flow in 2023 and 109.6% in 2024. In 2025, free cash flow was negative, yet dividends continued. Ford also spent $8.7 billion on capital projects in 2025 and planned higher spending for 2026. Its buybacks were designed partly to offset dilution from employee compensation and convertible notes, rather than simply reduce every investor’s ownership.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | -343 | 3,233 | 5,582 | 5,461 | -5,689 |
| − Dividends paid | 2,989 | 3,118 | 4,995 | 2,009 | 403 |
| − Share buybacks | 0 | 426 | 335 | 484 | 0 |
| Paid to shareholders | 2,989 | 3,544 | 5,330 | 2,493 | 403 |
| Paid out, % of free cash flow | not meaningful | 109.6% | 95.5% | 45.7% | not meaningful |
What could change Ford's dividend?
Management’s July 2026 guidance calls for $10–11 billion adjusted EBIT and $6–7 billion adjusted free cash flow. It also calls for $9.5–10.5 billion of capital spending. First-half adjusted free cash flow was only $0.2 billion. Reaching the full-year floor requires $5.8 billion in the second half.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 10,200 (7,200 / 11,500) | 10,500 (8,000 / 13,000) | 10,800 (8,500 / 14,500) |
| Dividends per share | 0.60 (0.40 / 0.80) | 0.60 (0.40 / 0.80) | 0.60 (0.40 / 0.80) |
| Net debt | -9,018 (-5,718 / -9,837) | -14,618 (-9,318 / -16,437) | -20,518 (-13,918 / -24,037) |
What is Ford's dividend yield today?
The tables show revenue kept growing through 2025, but operating margin turned negative as EV reset charges hit. The memo’s real free cash flow and real free cash flow per share turned negative in 2025, while industrial net cash fell across the five years shown. The 6.5x forward P/E assumes forecast earnings become cash; the 4.8% dividend yield has no buyback yield, as 2025 buybacks were zero while stock pay continued.