10 Best Stocks to Invest in for Passive Income

5. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 45

Dividend Yield as of February 24: 6.42%

Ford Motor Company (NYSE:F) is a Michigan-based company that is engaged in the manufacturing, distribution, and sale of automobiles. The US automaker recently concluded its 2024 fiscal year, with significant losses in its electric vehicle division offsetting much of the earnings from its traditional combustion engine sales. Furthermore, escalating trade tensions with Mexico and Canada have introduced uncertainty, as potential tariffs on imported goods and materials pose additional risks. The stock is down by nearly 22% in the past 12 months.

However, Ford Motor Company (NYSE:F) has been actively refining its operations to boost efficiency through strategic restructuring. The company has streamlined its international footprint by withdrawing from underperforming markets like Brazil and India while reducing its presence in Europe. This shift has allowed Ford to focus more on advancing its electrification efforts. In the fourth quarter of 2024, the automaker reported $48.2 billion in revenue, marking a 5% increase from the same period a year earlier.

Ford Motor Company (NYSE:F) maintained solid cash generation throughout 2024, reporting $15.4 billion in operating cash flow and $6.7 billion in free cash flow for the year. Looking ahead to 2025, the company anticipates adjusted EBIT between $7.0 billion and $8.5 billion, with projected adjusted free cash flow ranging from $3.5 billion to $4.5 billion. Capital expenditures are expected to be in the range of $8 billion to $9 billion. Currently, it offers a quarterly dividend of $0.15 per share and has a dividend yield of 6.42%, as recorded on February 24.