12 Best 5% Dividend Stocks To Buy According To Hedge Funds

4. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 36

Dividend Yield as of February 5: 5.99%

Ford Motor Company (NYSE:F) is an American company that is engaged in the manufacturing, distribution, and sale of automobiles. Unlike many of its competitors, Ford quickly recognized the growing demand for larger vehicles. In 2018, the company made the strategic decision to phase out its sedan lineup and concentrate on more profitable trucks, SUVs, and crossovers. This shift proved to be a wise choice, as larger vehicles not only offer higher profit margins but also align better with changing customer preferences.

In addition, Ford Motor Company (NYSE:F) made significant cuts to its underperforming international operations, exiting markets like Brazil and India and scaling back its presence in Europe. This streamlining has allowed the company to focus more effectively on its electrification strategy. In the fourth quarter of 2024, the company reported revenue of $48.2 billion, up 5% from the same period last year.

Ford Motor Company (NYSE:F)’s cash generation also came in strong for the year. In FY24, the company reported an operating cash flow of $15.4 billion and its free cash flow came in at $6.7 billion. The outlook for the full year of 2025 projects an adjusted EBIT ranging from $7.0 billion to $8.5 billion, with adjusted free cash flow expected between $3.5 billion and $4.5 billion. Capital expenditures are anticipated to fall between $8 billion and $9 billion. The company currently pays a quarterly dividend of $0.15 per share and has a dividend yield of 5.99%, as of February 5.

As of the close of Q3 2024, 36 hedge funds in Insider Monkey’s database owned stakes in Ford Motor Company (NYSE:F), worth over $744.4 million in total. With nearly 11 million shares, Renaissance Technologies was the company’s leading stakeholder in Q3.