Yes, legacy automaker Ford (F) recently announced another recall effort, which is just one more in an ever-growing slate of recall efforts. The good news about this one is that it only impacts just under 5,000 Ford Broncos made over the last five years. The bad news is that it is one more recall in an ever-growing slate, as noted previously, that is putting Ford on the path toward another record-breaking year of recalls. Investors were starting to get tired of this particular song, and sent Ford shares down nearly 2% in Wednesday afternoon’s trading ahead of its earnings report.
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Ford recalled 4,922 Bronco model SUVs that were made between 2021 and 2025. Apparently, the vehicles can lose drive power, which is enough to potentially cause them to roll away while parked. Apparently, while getting a separate service issue addressed, reassembling the transmission caused the joint between the transmission and the transfer case to become “misaligned.”
This can cause the joint to wear away, and either make it impossible to move engine power to the axles, or keep the axles from moving freely while in Park mode. Vehicle owners may notice a “grinding noise” coming from the transmission, which is a pretty clear sign of the problem currently taking place. There are no accidents or injuries connected as yet, and at least 25 warranty claims have been filed connected to this. As ever, the dealerships will be on the front line for repairs here, replacing the transmission and transfer case as needed.
Dividend Announced
Ford shareholders, meanwhile, got a bit of good news of the best sort: free money. Ford’s board of directors declared a second-quarter regular dividend of $0.15 per share for outstanding common stock, as well as outstanding Class B stock. Those who hold Ford shares on May 12 will receive their payment June 1.
Dividends are generally welcome news, even if a nickel a month per share does not exactly add up to much unless you happen to have literally tens of thousands of shares. But at a shade over $12 per share, Ford shares are a little more accessible to the everyday investor looking for dividend value.
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 23.88% rally in its share price over the past year, the average F price target of $13.79 per share implies 13.56% upside potential.
