Ford Motor Company (F): One Great Dividend You Can Buy Right Now

By comparison, GM saw a more modest increase of 15% in terms of units sold in China (boosted primarily by its partnership with SAIC Motors), while Japanese carmakers Toyota Motor Corporation (ADR) (NYSE:TM) and Honda Motor Co Ltd (NYSE:HMC) reported declines of 6.5% and 2.4%, respectively. For Toyota Motor Corporation (ADR) (NYSE:TM), it marked the ninth decline in the past 10 months, and it reinforces some of the prevailing negative sentiment that exists between China and Japan that could give U.S. automakers like Ford Motor Company (NYSE:F) an edge and cause sales for Toyota Motor Corporation (ADR) (NYSE:TM) and Honda Motor Co Ltd (NYSE:HMC) to slowly sink.

Show me the money Ford!
Where Ford has a shot at really shining is with regard to taking care of its shareholders. If you purchased Ford Motor Company (NYSE:F) five years ago, you’ve already been rewarded with a 122% dividend-adjusted gain, and that could be just the tip of the iceberg if Ford keeps having its way in China and other emerging markets. Ford Motor Company (NYSE:F) has two additional ways of rewarding shareholders over the coming decade: through share repurchases and its dividend.

Over the previous three years, Ford has produced average free cash of approximately $5.5 billion while reducing its outstanding share count by close to 160 million shares (close to 4% of all outstanding shares). More importantly, Ford Motor Company (NYSE:F) has moved its dividend back into a comfortable range for investors at $0.40 annually — good enough for a current yield of 2.7%. At this level Ford is paying out just 29% of its earnings in the form of a dividend, leaving ample room to pay down debt and for R&D purposes.

Foolish roundup
Ford may be nearing a multiyear high yet again, but there looks to be plenty of fight still left in this dog. Ford Motor Company (NYSE:F)’s engines and designs are being well received in overseas markets, while it’s certainly holding its ground in domestic markets against GM and other imports. Led by an incredible CEO, Ford is delivering a yield that puts 10-year U.S. Treasuries to shame and should easily continue to drive over its competition if it stays the course.

The article 1 Great Dividend You Can Buy Right Now originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Ford and Tesla Motors Inc (NASDAQ:TSLA). It also recommends General Motors Company (NYSE:GM).

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