If you follow me on social media, you know I don’t hang in one place for very long. I recently visited friends in Florida and San Diego. I’m now in Palm Springs, CA, at FreedomFest. 

I usually travel alone, which gives me many opportunities to strike up conversations with strangers in airports, coffee shops, and art museums. While waiting at the gate at the Memphis airport last Friday, I ended up talking with a gentleman about Ford’s BlueOval City project just outside the city. He’s part of the project’s landscape team and recently finished another job at Universal’s Epic Universe in Orlando.

It was fascinating to hear about both projects from his perspective. It also got me thinking that it’s been a while since I checked in on Ford. It currently pays $0.15 per quarter for a 5.7% annualized yield. I own about 50 shares in my personal portfolio from a few small purchases and the power of dividend reinvesting.

The company was the top US manufacturer and top selling brand in 2024. The question is whether Ford can maintain that position into the future. More importantly, will it be able to pay a dividend for decades to come and be deemed a “set it and forget it” holding.

The Future of the Automobile

Ford has been making waves in the automotive industry since it rolled out its assembly line and mass production over 100 years ago. So, what’s next? The answer is the BlueOval City mega campus announced in 2021.

It’s a once-in-a-lifetime project the company describes as an “automotive manufacturing ecosystem” that covers 3,600 acres or nearly 6 square miles. It will be the foundation on which Ford will build its electric vehicle future. The construction phase is nearly complete, and equipment installation should begin next year.

This means Ford’s new EV truck model (not yet revealed) can be delivered to buyers in 2027.

In addition to the truck production facility, Ford has partnered with global battery producer SK Innovation to launch a new SK Battery plant. SK is one of the world’s top EV battery makers, and the partnership will advance battery technology to power the future of the automotive industry.

There are still some real limitations with electric cars, specifically battery range and charging speed. Greater EV acceptance will require cars with greater range and fast charging. This could mean that plug-in hybrids are the interim future of EVs, which Ford offers as well.

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Is The Dividend Safe?

In Ford’s Q1 earnings release, the company delivered $1 billion of EBIT before tariff related impacts. This far exceeded expectations of a breakeven quarter. The company remains on track to hit its original full-year EBIT guidance of $7-8 billion.

It was one of the best first quarters for US truck sales in over 20 years. That strength has continued into the second quarter. May sales rose 16% year over year across the Ford and Lincoln brands. Year-to-date sales are up over 6%.

However, “stable” is the last word I would use to describe Ford’s dividend. It has paid a dividend on and off since 1914. The dividend track record since 2000 has been turbulent: two suspensions (2006 & 2020); several attempts at an increase that turned into cuts; and special dividends paid when the money should have gone to building a record of consistency.

And the share price has no clear trajectory either.

This is definitely not a Bedrock Income position. And until we see success from the BlueOval project, I would not consider it as a Current Yield pick. 

I will keep my shares and reinvest the dividends, but I don’t see myself buying more shares any time soon. I can, however. imagine a motorcycle trip to check out the BlueOval as it’s just 47 miles from my house.

What do you all think? Are you an EV driver? Do you want to be, but the battery technology is holding you back? Either way, are you putting some money into EV exposure? Let me know, I really am interested to hear your thoughts.

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For more income, now and in the future,

Kelly Green

• BlueOval City
• Ford dividend
• Ford EVs