Is Ford a Dividend Stock Worth Buying for 2026 After Its 34% Rise This Year?

Group 1: Market Overview - U.S. stocks are projected to deliver double-digit returns for the third consecutive year despite volatility in the automotive industry due to tariffs and setbacks in the electric vehicle sector [1] - General Motors (GM) is significantly outperforming other auto stocks, while Ford (F) has increased by 34% this year, surpassing competitors like Stellantis (STLA), Honda Motor Company (HMC), and Toyota Motors (TM) [2] Group 2: Ford's Financial Performance - Ford stands out with a dividend yield of 4.5%, supported by regular quarterly dividends and special dividends aimed at achieving a distribution target of 40% to 50% of annual free cash flows [4] - Ford's adjusted free cash flow guidance for 2025 is between $2 billion and $3 billion, which may not fully cover its base dividend, especially after a fire incident at a key supplier and ongoing tariff impacts [5] - The company announced a $19.5 billion charge in its EV business, with $5.5 billion expected in cash over the next two years, primarily in 2026, indicating pressure on cash flows [6] Group 3: Dividend Outlook - The best-case scenario for Ford investors is maintaining the current payout, even if it means exceeding payout targets, as companies typically cut dividends only in severe situations [7]