How much will Ford Motor Company pay out in dividends this year?

You might like it Ford Motor Companyhis (F -0.37%) above average dividend yield. As veteran investors can attest, however, there is more to the story. Is the dividend growing? Can the company afford to keep paying him? Some dividend stocks are not as attractive once under control.

With that as a backdrop, here’s a look at how much the automaker is likely to pay out in dividends this year, and what that means for shareholders.

Ford Motor Dividend Snapshot

Ford was once a titan, but competitors, circumstances and time finally caught up with the automaker in the 1990s. That’s when the automaker’s dividend began to fall more than it grew, especially during periods of economic weakness.

F Dividend data by YCharts

To its credit, Ford has made efforts to supplement the ho-hum quarterly payouts with the occasional “special dividend.” The company’s regular quarterly payout of $0.15 per share addition February’s special dividend of $0.18 per share puts it on track to distribute dividend payments of $0.78 per share in 2024, which translates to a dividend yield of 7.2%.

By the way, this will cost the automaker about $3.7 billion, or about two-thirds of its likely 2024 net income based on generally accepted accounting principles (GAAP). Per share, that’s slightly less than half of the $1.93 per share earnings that analysts expect this year.

Not particularly great for any investment objective

There is the problem for interested investors. Much of this company’s profits go to dividends rather than reinvestment.

Again, which growth opportunity deserves more reinvestment? The company has nearly $25 billion in cash that it is scrambling to find something more constructive to use. Lack of spending money is not a problem.

Regardless of its fiscal situation, Ford Motor is not a top pick for any investor who needs predictable or growing dividend income. The automobile business also faces modest growth prospects for the foreseeable future. There are much better options out there, regardless of your investment objective.