Ford stock (F) has fallen over 20% from its 2026 highs and is in bear-market territory. Meanwhile, the crash has pushed the stock’s dividend yield above 5%, making it among the highest-yielding S&P 500 Index ($SPX) constituents. In my previous article, I had noted that it was premature to buy the dip in F stock. With the stock now trading near its lows for the year, let’s explore whether the Blue Oval would fit into the portfolios of investors looking for high dividend stocks.

To begin with, let’s look at Ford’s dividend policy, which is the most generous among legacy automakers. The company pays a quarterly dividend of 15 cents, which it has held static since July 2022. It intends to return between 40% and 50% of annual free cash flow to shareholders and has topped up its regular quarterly dividend with a special dividend in each of the three preceding years to reach that threshold.

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Last year, Ford paid a supplemental dividend of $0.15 after dishing out $0.18 in 2024. It paid a special dividend of $0.65 in 2023, which it attributed to the return on its investment in electric vehicle (EV) startup Rivian (RIVN). The company did not announce a special dividend this year, which is not surprising as it overshot its payout targets with the regular dividend. Ford’s free cash flows tumbled to $3.5 billion last year compared to $6.7 billion in 2024 due to President Donald Trump’s tariffs and supply chain issues after a fire at a key supplier. For 2026, the company has guided for adjusted free cash flows between $5 billion and $6 billion. Meeting that guidance would mean that the company would be able to pay the regular dividends without much stress, even though I doubt it would pay additional dividends next year.

While sell-side analysts still have a consensus rating of “Hold” on Ford, sentiment has gradually improved. Earlier this month, Bank of America reinstated coverage on the stock with a “Buy” rating and a Street-high target price of $17. Previously, in January, Piper Sandler upgraded F stock from “Neutral” to “Overweight” while assigning a target price of $16. Ford’s mean target price is $13.72, which is 17% higher than the current price levels.

I have been bearish on Ford for quite some time now due to rich valuations and the company’s perennial troubles with recalls and warranty costs. Last year, the company had 153 recalls, which is the highest for any automaker in modern history. In terms of numbers, it recalled 12.9 million vehicles last year, and 2026 looks like it'll be another dismal year for Ford in terms of recalls.