Exploring Ford Motor Co.’s Dividend Yield
Entering the realm of stocks encompassed by the lens at Dividend Channel, a striking development unfolded on Wednesday. Ford Motor Co. (Symbol: F) emerged to surpass the noteworthy 5% yield benchmark, propelled by its quarterly dividend amount which, when annualized, reaches $0.6. On that trading day, the stock navigated through various hands, temporarily dwelling as low as $11.95.
The role of dividends in an investor’s playbook resonates with profound significance. Historical data embarks on a meticulous journey unveiling dividends’ profound impact on the stock market’s total return. For instance, envision clutching S&P 500 ETF (SPY) shares on the eve of 12/31/1999 – each share procured at $146.88. Zoom ahead to 12/31/2012, witnessing each share’s depreciation to $142.41, translating to a $4.67/share downturn across the expanse of time.
Yet, the narrative morphs remarkably as one factors in the dividend accumulation surging to a staggering $25.98 per share during this spell. The net outcome unfolds as a riveting 23.36% total return. Incorporating dividends, though, transforms the scenario into a mere 1.6% average annual total return. Thus, juxtaposing this tale against a yield exceeding 5% projects an eminent allure, especially if sustainability underpins this yield’s essence. Ford Motor Co. (Symbol: F) reigns as an S&P 500 constituent, endowing it with the veiled eminence of being a large-cap contributor to the S&P 500 Index.
Delving Into Dividend Predictability
Dividends, by nature, flow and ebb akin to the profitability tides experienced by each enterprise. A historical extrapolation focusing on Ford Motor Co. through the lens of the F stock’s history graph assists in ascertaining the dividend’s perspicacity for continuity. This introspection acts as a torchlight, illuminating whether envisioning a 5% annual yield epitomizes a reasonable expectation.
