Ford is known for generous dividends, while GM buys back large quantities of stock. Total yield is a key metric for investors. Ford’s 5% dividend yield beats GM’s 1%, yet GM returns more value overall. Ford pays out dividends and supplemental dividends. The Ford family’s control ensures shareholder interests are aligned.
GM’s share price outperformed Ford’s, but total return favors Ford. Total yield considers share buybacks, a metric often overlooked. GM’s massive buybacks boost total yield to 14.29%. Investors should consider both dividends and buybacks for a full picture. Total yield is a crucial investment metric for evaluating companies like Ford and GM.
Read more at Yahoo Finance: Ford’s 5% Yielding Dividend Is Lucrative, but GM’s Total Yield Is Still Better — Here’s How That’s Possible
