All It Takes Is 1,700 Shares of This High-Yielding Dividend Stock to Generate Over $1,000 in Yearly Dividends.
2026-08-08 10:05
•Selena Maranjian •The Motley Fool
••••• •••• Axe Cap view
Ford’s Dividend Plays to Rand Yield Seekers
Ford’s 4.25% yield and turnaround offer income appeal amid Rand uncertainty.
Ford Motor’s 4.25% dividend yield jumps out in today’s low-rate world. Owning about 1,700 shares, costing roughly $23,400, delivers around $1,000 annually — not huge but steady income. The turnaround story, backed by rising profitability and a push into hybrid and autonomous vehicles by 2028, lends credibility. Valuations are downright cheap, with a P/E of 8 and price-to-sales near 0.3. For South African investors, this offers some diversification outside local cyclicals, especially when Rand stability feels fragile. The USD/ZAR currently trades around 18. While a stronger Rand could erode returns, current Rand softness supports holding such USD-denominated income plays. But competition in EVs, labour strikes, and geopolitical shocks remain real risks that could stall progress or dividend payments. If Ford stumbles, so does the expected steady income stream. this is just our opinion and not financial advice
Watch USD/ZAR for Rand volatility and consider a modest position in Ford shares or its callable preferreds for income, trimming if Rand strengthens and yields compress.
- F
- USD/ZAR
- Strong Rand reducing local returns
- Execution risk in Ford’s turnaround and EV transition
6/10
Ford Motor Company offers an attractive 4.25% dividend yield, allowing investors with approximately 1,700 shares (~$23,400) to generate over $1,000 in annual dividend income. The company is undergoing a turnaround with improved profitability, plans for hybrid and autonomous vehicles by 2028, and raised full-year guidance. However, risks include competition, union demands, and geopolitical uncertainties. Ford's valuation metrics are compelling with a P/E ratio of 8 and price-to-sales of 0.30.
Our take is based on reporting first published by The Motley Fool.