Legacy automaker Ford (F) took a big step forward today in addressing issues of affordability in its various car models. It brought back an old favorite: employee pricing on every car it sells. This should have been welcome news, as it is the kind of thing that draws clear interest in purchasing Ford vehicles. But investors were not so pleased, and shares slipped nearly 2% in Friday afternoon’s trading.
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Ford calls it the “American Value. For American Values” campaign, and it started today. It will run through July 6, which is in keeping with the American 250th anniversary celebration. This opens up the same prices that Ford employees pay, which is a discount over Manufacturer’s Suggested Retail Price (MSRP) by anywhere from a few hundred to a couple thousand dollars.
Ford Blue president Andrew Frick noted, “Ford has always believed that American values are more than words — they’re actions. As the nation approaches its 250th anniversary, ‘American Value. For American Values‘ is our way of giving back to the people who show up every day: American workers, small business owners, and families who place their trust in Ford.”
Dividend Safely
We also recently brought word of Ford’s planned dividend, $0.15 per share. And some might wonder if Ford can safely offer this dividend, and keep it running for some time to come. Since Ford, reports note, posted an $8.2 billion loss in 2025, it would be worth wondering. But as it turns out, the regular dividend should be safe for some time to come.
Ford, after all, paid out $3 billion in dividends back in 2025. This was with a free cash flow of $3.5 billion, and over $21 billion in operating cash flow. So unless something serious happens to impact free cash flow, Ford should be able to cover its dividend payouts handily. The fact that Ford ended the first quarter with $17.65 billion in outright cash on hand certainly does not hurt either. But given that Ford cut its dividend back in 2008 and suspended it in March 2020—though most of us remember the mitigating circumstances in 2020 that might have led to that—there are some potential issues afoot.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, eight Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 17.51% rally in its share price over the past year, the average F price target of $13.79 per share implies 15.95% upside potential.
